Which of the following is the best definition of consideration in contract law?

Which of the following is the best definition of consideration in contract law?
A . Full statement about something to provide
B. The act of thinking carefully about one thing
C. One thing given in exchange
D. Formal discussion between people who are trying to reach an agreement

View Answer

Answer: C

Explanation:

A simple definition of consideration is as follows C an exchange between the parties which results in a benefit to one party, and a detriment to the other. The case of Currie v Misa (1874) LR 10 Ex 153 provides an apt description of this:

“A valuable consideration, in the sense of the law, may consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility, given, suffered, or undertaken by the other.”

A practical example of this can be found by examining a simple contract. Party A offers £500 to Party B, who in exchange will fit his car with a new engine. Party A receives the benefit of his car being fixed, whilst Party B incurs the detriment of having to take time, effort, and perhaps expenses to fix the car.

Reference:

– Consideration & Promissory Estoppel

– CIPS study guide page 36-40

LO 1, AC 1.2