Nature of Consideration
Consideration: something that has value in the eyes of the law, and which a promisor receives in return for a promise
o Examples: payment of money, performance of a service, promise not to do something, relinquishment of a right,
delivery of property ,or even a promise in return for a promise
A gratuitous offer of a service, if accepted, must be performed with care and skill; otherwise, the promisor will be liable
for any loss suffered as a result of careless performance or negligence.
o This liability, however, would not flow from any breach of contract but, rather from the tort committed.
A person may be liable for a promissory note, or other negotiable instrument, to a subsequent endorser, even though no
consideration exists between them
If the rule relating to consideration is strictly applied to a promise of a donation to charity, the agreement would not be
enforceable, as the promise would be gratuitous
Seal as Consideration
Seal: a formal mode of expressing the intention to be bound by a written promise or agreement. This expression usually
takes the form of signing or affixing a wax or gummed paper wafer beside the signature, or making an engraved
impression on the document itself
o if seal is present, document is a formal agreement that the court can enforce
o over time, became less formal
the binding effect of a formal contract under seal, however, persists today
The tender process usually involves the advertisement of the particular needs of the firm to potential suppliers of the
goods or services, either by way of newspapers or by direct mail contact.
o Merely an offer to negotiate a contract
o The firm making the call to tender is not bound to accept the lowest offer nor, for the matter, any of the offers.
An offer made in response to the call may be revoked at any time before acceptance
o call for tenders frequently requires offerors to submit their offers as irrevocable offers under seal
Adequacy of Consideration
in general, the courts are not concerned about the adequacy of consideration because they are reluctant to become
involved as arbiters of the price or value that a person receives for a promise
main concern is with the presence or absence of consideration, rather than with whether the promisor received proper
compensation for his or her promise
The Click as Consideration
The click will become the new seal when it is tested