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Contract law – Introduction to Consideration
Key term: contemplation. Consideration involves providing value in exchange for another's value. In this chapter, we shall discuss the promise-maker (promisor) and the promisee (recipient). Most contracts involve both the promisor and the promisee. For instance, if Aaron agrees to buy James’ gooseberries for £2 per kilo, he is the promisor as he has agreed to pay James.. Aaron is the promisee, as James has pledged to supply the gooseberries in exchange for £2 per kilo. Similarly, James is both the promisor (delivering gooseberries) and the promisee (paying Aaron £2 per kilo). When identifying consideration, it's important to assess whether each person receives something for their pledge. This consideration makes the pledge binding. It's important to note that a commitment might be considered consideration even if no goods or money are transferred. Promises bind both parties to fulfill their obligations.
Key term: promisor. A contracting party who makes a guarantee to another party. Key term: promisee. A contractual party to whom a promise is made (by the promisor).
Key term: contemplation. Consideration involves providing value in exchange for another's value. In this chapter, we shall discuss the promise-maker (promisor) and the promisee (recipient). Most contracts involve both the promisor and the promisee. For instance, if Aaron agrees to buy James’ gooseberries for £2 per kilo, he is the promisor as he has agreed to pay James.. Aaron is the promisee, as James has pledged to supply the gooseberries in exchange for £2 per kilo. Similarly, James is both the promisor (delivering gooseberries) and the promisee (paying Aaron £2 per kilo). When identifying consideration, it's important to assess whether each person receives something for their pledge. This consideration makes the pledge binding. It's important to note that a commitment might be considered consideration even if no goods or money are transferred. Promises bind both parties to fulfill their obligations.
Key term: promisor. A contracting party who makes a guarantee to another party. Key term: promisee. A contractual party to whom a promise is made (by the promisor).
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