Constitutional development in Nigeria

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.