ABSTRACT
English contract law is based on the idea of a bargain. Both parties ‘give’ the other party something – the something is the consideration. Normally there is no problem in identifying what both parties give to the other. In a contract for the sale of goods one party gives the goods to the other party in exchange for the other party giving the seller money (the price). In such a case the seller’s consideration to the buyer is the goods and the buyer’s consideration to the seller is the money paid to the seller. As part of the examination of consideration this chapter will consider the benefit and detriment test used in determining whether the parties have both furnished consideration to each other. This chapter will also examine what constitutes a ‘valuable’ – valid – consideration. Finally, as part of the examination of what constitutes a valuable consideration, the significance of past consideration will be explored.
