Consideration and Its Rules
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“Consideration and its rules”
Assignment# 1
[Law-200]
Prepared By: Prepared For:
Name: M Shahajada Hossain Barrister Ishtiaque Ahmed (ItA)
ID#: 071-573-530
Section: 09
B.B.A
Date: 26th October, 2011.
Consideration:
Consideration is a very important element in a contract. While making a contract; parties of the contract agree to do or not do something based on exchanging some kind of value between them. These values they are exchanging are the consideration. So, without certain expectation an agreement is not enforceable unless there is some kind of consideration.
The British contract Act defines consideration as follows-
“when at the desire of the promisor, the promise or any other person has done or abstained from doing or does or abstains form doing, or promises to do or to abstain from doing, something, such act or abstinence or promise are called a consideration for the promise.”
Example:
Few days ago I choose to go to Cox’s Bazar. So book a bus ticket with 1,200 taka. In this case my promise, the consideration is the travel service and the bus company’s promise, the consideration is 1,200 Taka.
History of Consideration:
History of the consideration goes way back to 1600 and 1700 centuries. There was an interesting case of Stilk v Myrick (1809). So, this gives us an idea that the law of consideration is almost as old as the law of contract or the law of agreement.
Stilk v Myrick (1809) is an English contract law case of the High Court on the subject of consideration. In his verdict, the judge, Lord Ellenborough, decided that in cases where an individual was bound to do a duty under an existing contract, that duty could not be considered valid consideration for a new contract.
Stilk was contracted to work on a ship owned by Myrick for £5 a month, promising to do
“Consideration and its rules”
Assignment# 1
[Law-200]
Prepared By: Prepared For:
Name: M Shahajada Hossain Barrister Ishtiaque Ahmed (ItA)
ID#: 071-573-530
Section: 09
B.B.A
Date: 26th October, 2011.
Consideration:
Consideration is a very important element in a contract. While making a contract; parties of the contract agree to do or not do something based on exchanging some kind of value between them. These values they are exchanging are the consideration. So, without certain expectation an agreement is not enforceable unless there is some kind of consideration.
The British contract Act defines consideration as follows-
“when at the desire of the promisor, the promise or any other person has done or abstained from doing or does or abstains form doing, or promises to do or to abstain from doing, something, such act or abstinence or promise are called a consideration for the promise.”
Example:
Few days ago I choose to go to Cox’s Bazar. So book a bus ticket with 1,200 taka. In this case my promise, the consideration is the travel service and the bus company’s promise, the consideration is 1,200 Taka.
History of Consideration:
History of the consideration goes way back to 1600 and 1700 centuries. There was an interesting case of Stilk v Myrick (1809). So, this gives us an idea that the law of consideration is almost as old as the law of contract or the law of agreement.
Stilk v Myrick (1809) is an English contract law case of the High Court on the subject of consideration. In his verdict, the judge, Lord Ellenborough, decided that in cases where an individual was bound to do a duty under an existing contract, that duty could not be considered valid consideration for a new contract.
Stilk was contracted to work on a ship owned by Myrick for £5 a month, promising to do