Understanding Consideration in Contract Law

Contract Law: Consideration - Exam Revision Sheet

1. 📌 Essentials

• Consideration: Something of value exchanged, forming the basis of enforceability.
• Legal Value: Must have some legal benefit or detriment; adequacy is irrelevant.
• Types: Executed (done at formation), Executory (to be done later).
• Past Consideration: Generally invalid unless exceptions apply.
• Existing Duty: Performance of a pre legal obligation is not valid consideration unless beyond obligation.
• Part Payment of Debt: Usually not valid consideration; exceptions include early payment, third-party payment, or practical benefits.
• Practical Benefit: Can support consideration if the promisor gains a real, tangible benefit.
• Promissory Estoppel: Equity doctrine preventing strict enforcement of rights based on a clear promise and reliance.
• Modification: Usually requires fresh consideration unless practical benefits are present.
• Forbearance to Sue: Valid consideration if claim is valid and made in good faith.

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