There are two different theories or definitions of consideration: Bargain Theory of Consideration and Benefit-Detriment theory of consideration. 1) Under the Benefit-Detriment theory , an adequate consideration exists only when a promise made to the benefit of the promisor or to the detriment of the promisee, which reasonably and fairly induces the promisor to make a promise for something else for the promisee. - A contract must be either to the benefit of the promisor or to the detriment of the promisee to constitute consideration - I must gain a benefit or you must suffer a detriment. Courts have rejected this theory of consideration (Sufficient consideration if detriment suffered by promisee at request of promisor) It follows from this that consideration must move from the promisee but need move to the promisor. For example, if promisor (A) asks promisee (B) to pay (C) a sum of money as consideration for A's promise to B, that will be good consideration. However, if promisor (A) asks (C) to provide a payment as consideration for A's promise to B, that will not constitute good consideration (there is no detriment to B in Bargain theory has largely replaced benefit-detriment theory in modern contract theory, but judges often cite both and may use both models in their decisions. These theories usually overlap; in standard contracts, such as a contract to buy a car, there will be both an objective benefit and detriment. However, there are certain contracts which satisfy one but not the other. For instance, a deal in which the promisee feels subjectively relieved, but has not actually gained any legal rights
Contract Consideration-Bargained for Legal Detriment [2] That the uncle did not gain any direct material benefit from the nephew's behavior is irrelevant.
20 Mar 2012 Example: Consideration, Exchanging Benefit-Detriment. An uncle promises his nephew he will give him a certificate to use at the local shopping 14 Aug 2012 “Consideration” is something that has value in the eyes of the law and given in It can be understood using the “benefit-detriment analysis''. American Contract Law I (along with its sister course Contracts II) provides a The benefit detriment conception of consideration almost always looks to whether Was there consideration for the defendants' promise made on 9 April 1986 to pay pay the "bonus," they derived no benefit in law, since the plaintiff was promising to confers a benefit on the promisor without in fact suffering any detriment." There is instability in the definition and scope of consideration (factual/legal; an existing contractual duty where it confers ?practical benefit? on the promisor. the promisee?s detriment although courts have often enforced the promise. 3. (1930) "Contracts-Consideration," Indiana Law Journal: Vol. 6: Iss. 3, Article 6. adopted, benefit to the promisor and detriment to the promisee. A right, profit or
This benefit/detriment may consist of a counter promise or a completed act. B. Reciprocity: Causal relation between consideration and promise. 8.3.2 The idea of
The early view of consideration defined it as benefit to the promisor or detriment to the prom- isee. See W. STORY, supra note 12, § 431. The stress of Professor Cartwright observes that: “[w]ithin the law of contract, consideration is probably concept of “practical benefit” as consideration and via promissory estoppel. promise, but, rather, to avoid the detriment occasioned by the promisee's What are the basic requirements for making a valid contract? (iv) Consideration (benefit given to the other party). In contract law, consideration means a detriment to the person who made the promise or a benefit conferred on the other party, Boris Kozolchyk, Contracts -- Consideration -- Pre-Existing Duty, 13 U. Miami L. statement that nevertheless there is no "legal benefit" or "legal detriment" is an Hitherto, (except in unilateral contract situations) consideration subsisted in the The Court held that the 'practical benefit' that accrued to the promisor from the detriment to the promisee is necessary to trigger the operation of the law of
The first is the “benefit-detriment theory”, in which a contract must be either to the benefit of the promisor or to the detriment of the promisee to constitute consideration. The second is the “bargain theory”, in which the parties subjectively view the contract to be the product of an exchange or bargain. The bargain theory has largely replaced the benefit-detriment theory in modern contract theory, instance, a deal i which the promisee feels subjectively relieved, but hasn’t
that consideration has no part in the definition of contract since the com- mon law some benefit conferred upon the promisor or prejudice suffered by the promisee, to the promisee, but is a legal detriment.14 0 Refraining from an assault on. ment, to be a contract, must have consideration.5 And simply because a promise is is not considered a “legal benefit” to the promisor or a “legal detriment” to. This benefit/detriment may consist of a counter promise or a completed act. B. Reciprocity: Causal relation between consideration and promise. 8.3.2 The idea of The early view of consideration defined it as benefit to the promisor or detriment to the prom- isee. See W. STORY, supra note 12, § 431. The stress of Professor Cartwright observes that: “[w]ithin the law of contract, consideration is probably concept of “practical benefit” as consideration and via promissory estoppel. promise, but, rather, to avoid the detriment occasioned by the promisee's What are the basic requirements for making a valid contract? (iv) Consideration (benefit given to the other party). In contract law, consideration means a detriment to the person who made the promise or a benefit conferred on the other party, Boris Kozolchyk, Contracts -- Consideration -- Pre-Existing Duty, 13 U. Miami L. statement that nevertheless there is no "legal benefit" or "legal detriment" is an
Was there consideration for the defendants' promise made on 9 April 1986 to pay pay the "bonus," they derived no benefit in law, since the plaintiff was promising to confers a benefit on the promisor without in fact suffering any detriment."
The first is the “benefit-detriment theory”, in which a contract must be either to the benefit of the promisor or to the detriment of the promisee to constitute consideration. The second is the “bargain theory”, in which the parties subjectively view the contract to be the product of an exchange or bargain. The bargain theory has largely replaced the benefit-detriment theory in modern contract theory, instance, a deal i which the promisee feels subjectively relieved, but hasn’t In contract law, consideration is a detriment to the promisee and a benefit to the promisor. In order to make for a valid contract and for legal detriment to have been suffered, consideration must be exchanged. A pre-existing duty to perform does not constitute legal detriment and fails to make a contract enforceable. Consideration, in contract law, an inducement given to enter into a contract that is sufficient to render the promise enforceable in the courts. The technical requirement is either a detriment incurred by the person making the promise or a benefit received by the other person.