Page 57 - PRINCIPLE OF LAW- FINAL (eISBN) pdf
P. 57
Politeknik Kota Bharu
2.1.2 CONSIDERATION
✓ Clause 2d
✓ ‘The price of a promise’ and it is a requirement for a contract
under common law.
✓ Valuable consideration: some right, interest, profit or
benefit accruing to the one party, or some forbearance,
detriment, loss, or responsibility given, suffered, or
undertaken by other.
✓ Principle rules of consideration:
a. Agreement without consideration is null and void.
b. Consideration must be sufficient but not be adequate.
c. Consideration must not be from past.
Consideration must move from the promise
▪ Intention to create legal relation.
▪ Readiness of each party to accept the legal consequences if
he does not perform his contract.
▪ Presumed doe commercial agreement that parties intend to
be legally bound.
▪ Most domestic & social agreements are not enforceable
based on public policy (child & parent, Husband & wife)
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