law of consideration

It will be necessary to give special reference to the law of consideration in dealing with both cases so as to give a careful determination on whether Paul should pay the extra money to the contractors or the bonus to his staff.

When identifying what consideration is, it will also be right to consider if the rules of consideration were met in this case so as to help in deciding whether Bookworm Ltd. should pay both parties the agreed extra amounts or bonuses. In consideration, a promise made by deed is binding, and a promise in a ‘simple’ contract, that is; not by deed, is binding if it is supported by consideration. It is however important to note that a promise not supported by consideration, is not binding. It is also important to note that consideration must be something of value in the eyes of the law, though it does not need to be adequate. Value is interpreted as economic value and not moral obligation, as can be referred to the case of Thomas V Thomas, whereby Mrs. Thoma...