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Contract Law - The performance of existing duties and consideration
If a person fulfills their contractual or legal obligations, there is no transaction and thus no consideration. Fulfilling legal obligations does not constitute consideration. In general, fulfilling legal obligations is not taken into consideration.
If Lily pledges to provide evidence in a trial in exchange for £1,000, even if she is already legally compelled to do so, Nate’s commitment to pay her £1000 does not apply. If a person goes above and above what is legally required, the promise, act, or omission may be considered. If the police provide extra security at a business owner's request, it is considered consideration for the owner's pledge to pay.
Consideration refers to fulfilling a contractual obligation to a third party
Assume you are contractually obligated to repay a debt to a Future Bank. Finance Bank promises to make a loan to you if you repay the loan to Future Bank. Regarding your relationship with Finance Bank, Future Bank is a third party. Although you are contractually obligated to repay the loan to Future Bank, English law considers repayment as consideration for Finance Bank's agreement to make a loan to you, as Future Bank is a third party to your relationship with Finance Bank.
Performing an existing contractual duty is not considered a general rule. To make a contract legally binding, the promisor must provide additional consideration, unless the contract is a deed in which case no consideration is necessary. As a practicing lawyer, it's important to understand which promises, acts, or omissions can be considered for contract amendments
If a person fulfills their contractual or legal obligations, there is no transaction and thus no consideration. Fulfilling legal obligations does not constitute consideration. In general, fulfilling legal obligations is not taken into consideration.
If Lily pledges to provide evidence in a trial in exchange for £1,000, even if she is already legally compelled to do so, Nate’s commitment to pay her £1000 does not apply. If a person goes above and above what is legally required, the promise, act, or omission may be considered. If the police provide extra security at a business owner's request, it is considered consideration for the owner's pledge to pay.
Consideration refers to fulfilling a contractual obligation to a third party
Assume you are contractually obligated to repay a debt to a Future Bank. Finance Bank promises to make a loan to you if you repay the loan to Future Bank. Regarding your relationship with Finance Bank, Future Bank is a third party. Although you are contractually obligated to repay the loan to Future Bank, English law considers repayment as consideration for Finance Bank's agreement to make a loan to you, as Future Bank is a third party to your relationship with Finance Bank.
Performing an existing contractual duty is not considered a general rule. To make a contract legally binding, the promisor must provide additional consideration, unless the contract is a deed in which case no consideration is necessary. As a practicing lawyer, it's important to understand which promises, acts, or omissions can be considered for contract amendments
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