What is Consideration?

1066 Words Feb 20th, 2018 4 Pages
"Consideration means an act or promise given in exchange for the promise." A promise to pay more must be supported by consideration since, the factual benefit cannot amount to consideration to accept less. "However, there is some question as to how far it is modified by an equitable principle known as promissory estoppel." Where a promise is not supported by consideration, the promise may be binding under the doctrine of promissory estoppel. Promissory estoppel excludes the general need of consideration within a contract and stops a person going back on their promise. This is to avoid any injustice. This essay will look at how promissory estoppel relates to the doctrine of consideration and whether it overlaps when considering the creditors promise to accept less.
Consideration is where the parties need to promise to do something or give something. The common law helps us understand what amounts to good consideration. A good consideration is if the parties gain a benefit or suffer detriment. There are three element of consideration. Firstly 'consideration must be sufficient but it need not to be adequate.' This is where in the Court need to recognise as the consideration being of something value. Secondly 'past consideration is not good consideration.' Thirdly 'the consideration must move from the promisee'. However after taking into account the doctrine of consideration, we will need to know how…