Consideration (England and Wales)
Consideration ( Latin causa lucrativa ) denotes the requirement of a contractual consideration in the law of England and Wales . Consideration is a prerequisite for the enforceability of contracts that are neither sealed nor signed in front of witnesses.
definition
Following the principle of consideration ( German consideration ) one can creditors a contractual debt only obtain if the creditor the debtor has provided (or a third party) also return. The prerequisites for consideration are controversial in modern English contract theory. Classically, consideration is defined as follows:
A valuable consideration, in the sense of the law, may consist either in some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.
" Consideration against payment in the legal sense can consist either in a right, interest, gain or advantage for one party or in an omission, disadvantage, damage or obligation, which the other party grants, suffers or obliges."
requirements
appropriateness
The courts do not check whether the consideration is proportionate to the contractual performance.
- Example: A house with a market price of £ 300,000 sells for £ 1. £ 1 is sufficient as consideration .
This means that even the smallest amounts are recognized as consideration . In Chappell & Co v Nestlé (1960) , the House of Lords decided that chocolate paper was an effective consideration and thus a contract existed.
Compliance with a legal obligation
According to the traditional view, the fulfillment of a legal obligation could not be considered . In its judgment in decision Ward v Byham (1956) is presented Lord Denning first time in contradiction to the traditional view, but the other judges divided on this point the Court of Appeal not his view. The decision Williams v Roffey Brothers (1991) is seen as a further attack on the traditional rule .
Promissory Estoppel
The exception was developed by Lord Denning in the case of Central London Property Trust Ltd v High Trees House Ltd (1947) KB 130 and is known as the promissory estoppel . According to this principle also promises can be enforced if the creditor has acted in reliance on the promise and to his own detriment to the fulfillment of the promise to leave has.
See also
literature
- Patrick Atiyah : Consideration in Contracts: A Fundamental Restatement . 1971.
- Alfred Denning : Recent Developments in the Doctrine of Consideration . In: Modern Law Review . tape 15 , 1952, pp. 1 .
- Ewan McKendrick : Contract Law . Palgrave, New York 2005, 5. Consideration and form, pp. 85-129 .
- Konrad Zweigert , Hein Kötz : Introduction to Comparative Law . JCB Mohr (Paul Siebeck), Tübingen 1996, p. 384-390 .
Individual evidence
- ↑ Quoted from Ewan McKendrick: Contract Law . Palgrave, New York 2005, 5. Consideration and form, pp. 85 .