Consideration

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Josh Weston
Mind Map by Josh Weston, updated more than 1 year ago More Less
laurathomas94
Created by laurathomas94 almost 9 years ago
Josh Weston
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Consideration
  1. Part formation whereby each party must benefit or bare detriment -- must be something of value in the eyes of the law
    1. Wright: Doctrine of Consideration to be Abolished from the Common Law?
      1. 1. Anson -- regards importance of single test: 'consideration is the only test of the intention of the promisor to bind himself by a contract.'
        1. Countries not in the common law which don't have consideration doctrine (e.g. France, South Africa). France focusses on cause, rather than consideration. Cause can inc. motive/impulse of charity/generosity.
          1. In Australia, causar represents economic purpose of contract -- a promise with no apparent economic advantage is not honoured
        2. 2. Wright -- suggests doctrine is a 'mere encumbrance'. Is it right that the law only recognises 'value' as relevant factor for consideration? Wright says this should be a question of fact in each case.
          1. 3. Sir William Holdsworth -- proposes reform so that contract can be enforced by law if in writing or if there is consideration. If you allow this, gratuitous promises may be enforced if they are in writing.
          2. Atiyah: Essays on Contract
            1. 1. Consideration as a doctrine does not exist as such, means by which the courts can establish which promises they will and won't enforce
              1. Consideration is the collective view of judges based largely on conditions and moral values of the time
                1. Will this/can this change in light of, for example, commerce?
              2. 2. Treitel -- Courts have power to invent consideration. NB Atiyah believes that 'invented' consideration is the same as current consider.
                1. Consideration = reason for enforcement of promise
                  1. Little to do with justice or desirability of enforcing the promise or recognising obligations
                2. Presence of benefit and detriment not required
                  1. This being said, dubious about whether promises should be enforced
                    1. 'It may concieveably be found desirable to enforce gratuitous promises in a much wider way than at present, but not to the same extent as ordinary commercial promises...in short, we must look at the reasons (or considerations) which make it just or desirable to enforce the promises.'
                      1. Abolition of consideration is nonsensical -- would end up starting from scratch
                3. Patterson: An Apology For Consideration
                  1. Lord Wright in 1936: urged for abolition of consideration. Wanted introduction of test which asked the question did the promisor at the time of contracting do so with a deliberate mind to contract?
                    1. 'I cannot resist the conclusion that the doctrine is a 'mere encumbrance'. A scientific or logical theory of contract would, in my opinion, take as a test of contractual intention, the answer to the overriding question whether there was a serious and deliberate intention..to make a binding contract...There is no public policy that I can see against enforcing gratuitous obligations.'
                    2. Patterson defends by arguing that consideration provides a method assuming a legal obligation for persons who are not thinking of legal consequences
                      1. Exchanges common in our society, consideration therefore a means of protect to those who aren't thinking about legal implications
                      2. Consideration method of achieving freedom of contract
                        1. Protects parties from flimsy and unfounded claims for contract
                        2. Consideration currently doesn't look at the intention of parties -- good thing because it promotes freedom of contract better than substitute of 'deliberate intention to be bound'
                          1. Not defended as perfect legal device -- promissory estoppel should be expanded by judiciary to fill gaps
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