Determining The Formation Of A Legally Enforceable Contract Essay

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Consideration is a key element required the formation of a legally enforceable contract. An evaluation will be made to determine the extent to which consideration demonstrates an element of a bargain and the legal enforceability of a contract. In addition an assessment will be establish whether occasions arise where an existing contract needs fresh consideration. A legally binding contract is formed with the presence of four key elements. Namely these are offer, acceptance, consideration and an intention to create legal relations. Should one of these elements be missing the contract cannot be legally enforceable. Consideration is not governed by legislation but has developed through case law. In undeveloped terms consideration refers to the price paid by one party in return for the promise of another. Cited Open University ‘OU’ (2016a 1.1). A more developed definition derived from Sir Frederick Pollok and was subsequently adopted by the House of Lords in the case of Dunlop Pneumatic Tyre Co Ltd v Selfridge & co Ltd [1915] AC 847. Consideration is defined as “an act of forbearance or the promise thereof is the price for which the promise of another is bought, and the promise thus given for value is enforceable”(p. 0) However, ‘price’ need not always be of monetary value as in the case of Ward v Byham [1956] 1 wlr 496 where ‘keeping a child well looked after and happy’ did amount to good consideration as it is not a legal obligation to keep a child ‘happy’. Consideration
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