consideration is what passes from one contractual party to another, each party in a contract must give something of value
'the price for which a promise is bought'
'some right, interest, profit benefiting one party and
a loss or responsibility undertaken by the other party'
each value must be something of value e.g. sell car – get money
must be sufficient but need not be adequate i.e. real, tangible and has some value
Chappel v Nestle
Nestle was running a special offer – free cd for wrappers 'some value as represented profit from chocolate bought.
Must not be vague – White v Bluett – a sons promise not to bother or pester his father any more in exchange for being released from debt – court held too vague
consideration has yet to be performed, exchange of promises to perform acts in the future. E.g. order car/order accepted
when act is completed – when you've performed your obligation e.g. car delivered/payment made
Act already completed when promise made. E.g. Alex gives Ben a lift home in car, on arrival Ben promises to give Alex £5 petrol money.. not legally binding.
Rule: it cannot operate as consideration – it is not valid consideration
held: court could not insist on payment as work had been done before the promise of payment made – not valid consideration as in past the other party is not receiving anything as the work is…