What Will Happen If Consideration Is Missing In An Agreement

It should be noted that a promise to do something illegal or immoral does not serve as a valid consideration. For a contract to be considered valid and enforceable by the courts, three elements of consideration must be met. If one or more of these elements are missing, the contract does not have the necessary conditions, it could possibly be considered invalid by the court. The required considerations are: A promise is enforceable if it is supported by a counterparty, that is, if the consideration has moved away from the promise. For example, in Tweddle v. Atkinson,[20] John Tweddle promised William Guy that he would pay a sum of money to William Guy`s child, and similarly, William Guy promised John Tweddle that he would pay a sum of money to John Tweddle`s child if both children were married. However, William Guy did not pay John Tweddle`s son, who then sued his executors for the promised amount. It was found that the son could not enforce the promise made to his father, because he himself had not really taken it into account – it was his father who had done it instead. The son has not received any consideration in return, so he cannot enforce the promise.

This rule of special consideration forms the basis of the doctrine of the legal effect of a contract, i.e. only one contracting party may bring legal proceedings for the terms of that contract. (Note that the premium doctrine was slightly modified by the Contracts (Rights of Third Parties) Act 1999.) Therefore, the examination of the promise was lenient with respect to the claim. While consideration should move away from promise, it doesn`t necessarily have to shift to fame. The promise may provide consideration to a third party if this is agreed at the time of conclusion of the contract. [11] Contract law states that „the counterparty must move away from the promise.“ Consideration is the benefit that each party receives or expects when entering into a contract. The consideration is often monetary, but it can be a promise to perform a certain action or a promise not to do something. For a contract or agreement to be legally binding, each party must receive some sort of consideration. In other words, a contract is one-way, so each party must receive something valuable from the other party or parties. Illegal or immoral acts are not legally considered as consideration. In Eastwood v Kenyon, a young girl`s guardian collected a loan to raise the girl and improve her marriage prospects. .