Critically disscuss the principles underpinning the doctrine of Essay

Critically disscuss the principles underpinning the doctrine of consideration and its necessity in english contract law - Essay Example This exchange is that exchange of consideration. Thus, if no consideration exists it holds that there is nothing on which to create or found liability. Reciprocal undertakings between the contracting parties have to be there. Promises by either of the parties have to be fulfilled. Therefore, if neither of the contracting parties promises or gives anything, there exists no consideration for the second party to promise or act. In the past, when contracts were entirely verbal, the English Common law never wanted to enforce any offers that were gratuitous, (that is, offers without anything in exchange). Thus, the criterion of consideration was added to the Common law. Judge Wilmot stated in his verdict in a 1765 case of Pillans vs Mierop, that consideration came in the times of verbal contracts and to such, the law required something to make agreements formal. This was to let the court determine at what point a deliberate undertaking took place to obligate oneself. Any contract which doe s not have consideration is called a nudum pactum. (duhaime.org, 2011) The doctrine of consideration attaches to itself several principles according to Ramsey and Thomas Telford limited in their book. These are very essential as per the book and they determine sufficiency and adequacy. These include the facts that consideration has to be sufficient or real, it has to be something besides the existing obligation to the contracting parties, it must not be a consideration for past contracts, it has to be given as a return to a prior promise, it must be economically valuable and it has to emanate from the party making a promise. (Ramsey and Thomas Telford Ltd, 2007 p 253) The study will narrow down on the principles, though. Focus will be on the main requirements for a contract to be considered valid. To this, four main principles will be put into consideration. Four main principles have to exist in a contract so as consideration to uphold or to be valid. These include the fact that con sideration has to be sufficient but not necessarily adequate, it is a must it be valuable, consideration has to come from the promisee to the promisor and it maybe executed or executor, though. Past consideration is not enough to and a promise. This, study is going to consider the four principles or requirements in detail and also in pursuit of understanding further the doctrine. The requirements are going to be tackled in the order in which they are stated. (Lisa, 2002) The major rule under consideration as Fisher and Greenwood state in their book is that it is a must consideration be sufficient be sufficient it is not a must it be adequate, though. To the adequacy issue, the book says that there is nothing amiss in purchasing a valuable item like a painting for an amount of USD 10. Fundamentally, consideration is just token showing a party’s intent in making a legal contract unlike a social non-biding agreement. This stated token involves the giving of a thing that is of va lue in line with the requirements of law. Consideration, thus, is no prove of fairness or equity in a contract, but it is just an evidence that there exists a legal and enforceable contractual agreement between the involved parties. This is in opposition to any social arrangement with no intent of a legal contract. Note that, the