Business Law Essay Example | Topics and Well Written Essays - 3500 words

Business Law - Essay Example ity given, suffered or undertaken by the other." Sir Fredrick Pollock’s definition of consideration is â€Å"An act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable." This was approved by Lord Dunedin in Dunlop v Selfridge Ltd ( 1915) It therefore follows that a gift is not a contract. There is no contract if there is no consideration. However consideration is required to be expressed in monetary terms. As such any discernible detriment to one of the parties could be that party’s consideration ( Duhaime) An agreement not to take a plot of land was considered a sufficient consideration(Hubbs). The law does not insist on the adequacy of consideration as it is between the parties to decide. The consideration should be reciprocal, each party offering consideration. Motive should not be confused with consideration. Our motive for contracting may be for personal reasons but it may coincide with the consideration we are giving or receiving. If the consideration is already â€Å"spent† in a prior contract, a new contract using that same consideration would be valid. "where a contractual duty already exists, it may be possible...to vary the original agreement without necessarily establishing a whole new contract with fresh consideration on both sides." In fact, refreshing a commitment to do something for a third party is consideration under common law† (Frdman G). Further the consideration should not be something or some act which is not legal or immoral or opposed to public policy. If a certain acts punishable under law then it is illegal. For example a work given to un unlicensed contractor is illegal. If the consideration is a past one, it will not make a valid contract. The court decisions on consideration suggest English law is in need of fundamental restatement with regards to Consideration. Dr Corbin and Prof Atiyah have already dealt