Consideration

Need to know

What you need to know

• Consideration is the element of exchange or bargain required in a contract.
• Defined as a benefit to the promisor or a detriment to the promisee (*Currie v Misa*).
• It must 'move from the promisee', meaning the person enforcing the promise must have provided the consideration.
• Consideration can be executed (an act for a promise) or executory (a promise for a promise).

Explanation

Consideration

1. Consideration is the element of exchange or bargain required in a contract.
2. Defined as a benefit to the promisor or a detriment to the promisee (*Currie v Misa*).
3. It must 'move from the promisee', meaning the person enforcing the promise must have provided the consideration.
4. Consideration can be executed (an act for a promise) or executory (a promise for a promise).