Consideration in English Law is Required in Every Contract Essay

Consideration in English Law is Required in Every Contract - Essay Example This essay will look into English law of contracts in relation to consideration. Overview Consideration can be described as the price to which a promise is given in return for something else. In most cases, promises need not to be in terms of money but in many other forms. According to the law of English contracts, if an agreement or a promise is not supported by consideration then it is considered nudum pactum (a bare promise) and it is not enforceable by law. The English contracts laws have traditionally had the clause of consideration for the contract to be accepted as. For instance, in large or valuable transactions, the law requires that all parties bring something of value â€Å"consideration† for a contract to be legally binding. This law of consideration was designed to ensure that all parties are given fair treatments or equal standing in the formation of contracts (Jenks, 2010). This clause is important especially in cases where issues arise after the formation of a contract. Consideration law can be used is solving changes to the contract law in cases such as in debugging the equitable doctrine of promissory estoppels. This is the case whereby earlier terms or agreements cannot be enforced in the solution of cases. Consideration is regarded as an agreement that had the intentions of the terms to be legally binding. Consideration can be anything that is sufficient in that it can be weighted and decided to have economic value (Cruz, 2008). English courts make use of consideration in deciding whether promises or contracts are legal or enforceable. A consideration cannot be drawn in the past unless there are express terms of a request by either of the parties. Several cases have presented difficult situations for solution of cases such as part payment of debts or undertaking duties currently obligated. This was evident in the case of Williams vs. Roffey where the court decided that the contract was legal since the duties undertaken by Williams wen t beyond his legally obligated duties (Chitty, 2006). Considerations are important in English law in that they are used in making sure that the terms of the contract can be enforceable. This is especially true in cases or contracts that are supposed to be enforced in the future. But the most used form of the term consideration in contracts is when there is a direct exchange of goods for money or goods for goods. Consideration in contracts is normally enforceable and practised practically when something has been given or promised in exchange for something else. A promise in English law is a contract if a promise or consideration is attached to the promise (Atkins, 1999). For instance, if you promise to pay or buy someone a gift who have to write it down or make a deed. In the case of Currie vs. Misa of 1875, consideration in the sense of law consists of interest, benefit or profit accruing to one person and detriment or loss of responsibility to be undertaken by the other party. The understanding and execution of these contracts are quite simple. In some cases the execution or implementation of the law of contracts is difficult as in the case of Dunlop Pneumatic Tyre Co Ltd vs. Selfridge & Co Ltd of 1915, whereby consideration was difficult to enforce. In such as case, there was exchange of promises where neither of them was enforced. The making of the