Law 5110 Study Guide - Quiz Guide: Ultra Vires, Contract
Document Summary
Doctrine of consideration is unique to the common law. Refers to the principle that there should be a cost" for a promise. Based on the idea of reciprocity: something of value in the eye of the law must be given for a promise in order to make it enforceable as a contract. ". Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other". An act of forbearance or the promise thereof is the price for which the promise of the other is bought, and the promise thus given for value is enforceable. ". Basic rule: quid pro quo, a person cannot sue under a contract unless he has provided consideration (given something) Similar to rule on privity on contract: a person is not able to sue on a contract to which he is not a party.
