Consideration in English contract law
Consideration can be an act, a promise or a legally recognised forbearance. In English contract law the law generally requires it to be sufficient, though it need not be economically equivalent to the other promise. Past acts and existing obligations require careful analysis, and exceptions and formal deeds have their own rules. Consideration is only one issue: agreement, intention, capacity and any required formalities also matter. The rule should not be assumed to apply identically in other legal systems.
Worked example
A customer promises $20 for a book and the seller promises to supply it. The reciprocal promises provide the exchange to assess alongside the other requirements.
Common mistake
Assuming consideration must be a fair market price or that every earlier voluntary act necessarily supports a later promise.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |