Podcast
Questions and Answers
What is the primary purpose of consideration in a contract?
What is the primary purpose of consideration in a contract?
What type of consideration involves a promise to perform an act in the future?
What type of consideration involves a promise to perform an act in the future?
What is a necessary requirement for consideration to be valid?
What is a necessary requirement for consideration to be valid?
What is an example of forbearance as consideration?
What is an example of forbearance as consideration?
Signup and view all the answers
What is an exception to consideration?
What is an exception to consideration?
Signup and view all the answers
What is not an enforceable contract?
What is not an enforceable contract?
Signup and view all the answers
What is an offer in the context of contract law?
What is an offer in the context of contract law?
Signup and view all the answers
Who defined an offer as an expression of willingness to contract on specified terms?
Who defined an offer as an expression of willingness to contract on specified terms?
Signup and view all the answers
What is essential for an offer to be valid?
What is essential for an offer to be valid?
Signup and view all the answers
Who emphasized the importance of placing a clear intention at the doorsteps of the offeree?
Who emphasized the importance of placing a clear intention at the doorsteps of the offeree?
Signup and view all the answers
What is the case that supported the principle of a precise offer?
What is the case that supported the principle of a precise offer?
Signup and view all the answers
What is an alternative definition of an offer?
What is an alternative definition of an offer?
Signup and view all the answers
What is the role of an offeror?
What is the role of an offeror?
Signup and view all the answers
What is the relationship between the offeror and the offeree?
What is the relationship between the offeror and the offeree?
Signup and view all the answers
What happens when the offeree introduces a fresh term in their acceptance?
What happens when the offeree introduces a fresh term in their acceptance?
Signup and view all the answers
What must an acceptance be in order to be operative?
What must an acceptance be in order to be operative?
Signup and view all the answers
What was the 1st respondent's condition for selling the property?
What was the 1st respondent's condition for selling the property?
Signup and view all the answers
What was the relationship between the appellant and the 1st respondent?
What was the relationship between the appellant and the 1st respondent?
Signup and view all the answers
Who deposited the sum of N1m in 1986?
Who deposited the sum of N1m in 1986?
Signup and view all the answers
What was the purpose of the N450,000 consent fee?
What was the purpose of the N450,000 consent fee?
Signup and view all the answers
What happens when a counter-offer is made?
What happens when a counter-offer is made?
Signup and view all the answers
What is necessary for an acceptance to be valid?
What is necessary for an acceptance to be valid?
Signup and view all the answers
What is required for an offer to be effective?
What is required for an offer to be effective?
Signup and view all the answers
What is the consequence of accepting a tender to supply goods?
What is the consequence of accepting a tender to supply goods?
Signup and view all the answers
What is the principle illustrated in Felthouse v. Bindley?
What is the principle illustrated in Felthouse v. Bindley?
Signup and view all the answers
What is the effect of non-communication of acceptance?
What is the effect of non-communication of acceptance?
Signup and view all the answers
What is mental assent in the context of contract law?
What is mental assent in the context of contract law?
Signup and view all the answers
What is the consequence of not responding to an offer?
What is the consequence of not responding to an offer?
Signup and view all the answers
What is the rule regarding an offer and acceptance?
What is the rule regarding an offer and acceptance?
Signup and view all the answers
What is the result of accepting a tender to supply goods over a period?
What is the result of accepting a tender to supply goods over a period?
Signup and view all the answers
Study Notes
Definition of Consideration
- Consideration is something of value given by one party to another party in exchange for a promise or performance
- It is a necessary element of a valid contract
- Consideration can be a benefit or a detriment to the party giving it
Types of Consideration
- Executory consideration: a promise to perform an act in the future
- Executed consideration: an act that has already been performed
Requirements of Consideration
- Something of value: consideration must have some value, no matter how small
- Given in exchange: consideration must be given in exchange for a promise or performance
- Bargained for: consideration must be bargained for, meaning it must be a part of the agreement
Examples of Consideration
- Money: payment of money in exchange for goods or services
- Goods: provision of goods in exchange for payment or other goods
- Services: provision of services in exchange for payment or other services
- Promise: a promise to perform an act in the future
- Forbearance: refraining from doing something, such as suing someone
Exceptions to Consideration
- Past consideration: something of value given before the agreement was made is not considered valid consideration
- Natural love and affection: promises made out of natural love and affection, such as a promise to give a gift, are not enforceable contracts
- Moral obligation: a promise to fulfill a moral obligation, such as a promise to pay a debt, is not enforceable unless there is new consideration
Definition of Consideration
- Consideration is a necessary element of a valid contract and involves something of value given by one party to another in exchange for a promise or performance.
- It can take the form of a benefit or a detriment to the party giving it.
Types of Consideration
- Executory consideration is a promise to perform an act in the future.
- Executed consideration is an act that has already been performed.
Requirements of Consideration
- Something of value must be given, no matter how small.
- The consideration must be given in exchange for a promise or performance.
- The consideration must be bargained for, meaning it must be a part of the agreement.
Examples of Consideration
- Payment of money in exchange for goods or services.
- Provision of goods in exchange for payment or other goods.
- Provision of services in exchange for payment or other services.
- A promise to perform an act in the future.
- Refraining from doing something, such as suing someone.
Exceptions to Consideration
- Something of value given before the agreement was made is not considered valid consideration.
- Promises made out of natural love and affection, such as a promise to give a gift, are not enforceable contracts.
- A promise to fulfill a moral obligation, such as a promise to pay a debt, is not enforceable unless there is new consideration.
Offer Defined
- An offer is a definite undertaking or promise made by one party with the intention that it should become binding on the party making it as soon as it is accepted by the party to whom it is addressed.
- An offeror must present their offer in precise and clear terms, allowing for no doubt or misinterpretation as to its real content in the mind of the offeree.
Characteristics of an Offer
- A definite promise, statement or proposition made by one party (offeror) to another party (offeree).
- Clearly and precisely indicates the terms under which the offeror is willing to enter into a contract with the offeree and be bound on the specified terms.
Acceptance
- An acceptance must be plain, unequivocal, unconditional and without variance of any sort between it and the offer.
- The offeree must unreservedly agree to the exact terms proposed by the offeror.
Counter-Offer
- A conditional acceptance or introduction of fresh terms by the offeree amounts to a counter-offer.
- A counter-offer requires acceptance by the original offeror, who becomes the offeree.
Communication of Acceptance
- Acceptance must be communicated to the offeror to be valid.
- Mental assent is insufficient; notification to the offeror is necessary.
- A mere mental agreement without notification does not amount to consent.
Conditional Acceptance
- A provisional agreement is not a binding agreement.
- Acceptance in ignorance of an offer cannot create a binding contract.
Cases Illustrating Principles
- Orient Bank v. Bilante International (1997) 8 NWLR (Pt. 515) 37 at 76: The offeror must present their offer in clear terms, allowing for no doubt or misinterpretation.
- Major General George Innih (RTD) & Ors. v. Ferado Agro and Consortium Ltd. 5 NWLR (Pt. 152) 604: The distinction between a true acceptance and a counter-offer.
- Best Nigeria Ltd. v. Blackwood Hodge Nigeria Ltd. 5 NWLR (pt. 1239) 95: A counter-offer or a qualified acceptance of an offer cannot give rise to a binding agreement between the parties.
- Felthouse v. Bindley, Common Pleas (1982) 11 C.B.(N.S.) 869; 142 E.R. 1037: The rule that one cannot impose an obligation on another to reject one’s offer.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
