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+--- Thread: Consideration (/thread-consideration)
Consideration - Zikria Yamin - 04-22-2007
Dear Seniors,
Please explain the Adequate and Sufficient Considerations.
Thanks
- Muhammad Amir - 04-23-2007
Consideration-English Law does not enforce gratiutious promises unless they are made by deed...Sir Fredric's Pollock Definiation is "Consideration is a price for which the promise of other is bought"...Consideration means that something must be given in exchange of something(Quid Pro Quo)...It can be defined as some denefit to yhe promissor and detriment to the promisee............under law Consideration need to be sufficiant but need not to be addequate...see illustration below.
If I have a ZMC(Zero Meter Car)....which is currently worth $20,000 and i sold this to my friend for only $100.....this consideration is sufficient to validiate the contract but not addequate.....Sufficiancy means that Consideration must have some real value as $100 is having some real value non-illusoury,non-imaginory........adequacy os the consideration means that equal worth so consideration is not need to be of equal worth unless they are made without any duress,fraud and misrepresentation...
- msc286 - 04-23-2007
In the above example of the car, would this transaction be legally binding on both parties if the consideration of a 20,000 priced car is fixed at 100 Only?
Please update.
- Muhammad Amir - 04-23-2007
Yes It will be legally binding as far as transaction has been freely entered into that is their is no question of duress, fraud, and misrepresentation.............the English case law for Suffeciancy of a Consideration is Thomas Vs Thomas.......where the exectutors provide a widow a chance to live in return of Pound 1 so that court of law held that this consideration(Pound 1) is suffeciant enough to validate the contract..........for Adequacy of consideration the authority English Case Law here is Chappel & Co. Vs Nestle....where court of law held that 3 wrappers of choclate is sufficiant enough to validate the contract altough there is no adequacy in it...