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English contract act - Coursework Example

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Advising Simon about the Consideration under English Contract Act. “What the law is” A valid contract must be a two way-street. If one party receives all the advantages and if the other party gets nothing, then it can be said that there is lack of consideration in the agreement and hence, it is not an enforceable contract…
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English contract act
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Download file to see previous pages A promise to offer something of value shall be regarded as consideration. A promise to repair a house next month is the analogues of carrying out the yard work in reality when assessing whether consideration is there or not. There should be a deal between two parties if one promises to do something if the other carryout some obligation. Consideration should not be relates to earlier period. It should have moved from the side of the promisee. Consideration should be satisfactory. It must not refer something the promise which is already required to be carried out. It must be within the purview of law. (Beatty et al 2007:276). According to Sir Frederick Pollock, consideration can be defined as “an act or restraint of one party usually known as promisee or the promise thereof is the cost for which the promise of the other is purchased (the promisor) and the promise thus offered is enforceable.” The same view was also adopted by Lord Dunedin in “Dunlop v. Selfridge.” (Andrews 2011:125). “What the law means?” In English law, when one party wants to make a promise without any compensation or consideration through an agreement which requires another party to pay or do something, is known as naked agreement or a nude pact or nudum pactum. Thus, a nudum pactum agreement entered without any seal is void in law, and a party cannot be coerced to perform upon it as per the maxim “Ex nudo pacto non oritur actio.” (Brown 2006:374). Gratuitous promises are unenforceable unless made in a written deed format which means a promise which is in writing, duly signed, had witnesses and duly delivered. In this case , a nationwide charity asks Simon if any of the artists signed to his record label would be prepared to perform free of charge at an open-air concert to celebrate the closing of the Olympic Games. Hence, the charity wants Simon to provide service of his record label free of charge which is known as Gratuitous promise, which is unenforceable in English law. In this case, the charity should have compelled Simon to sign an agreement to provide service free of charge, and any oral promise by Simon will be regarded as a gratuitous promise which is said to lack “consideration.” Thus, even if Simon has made a moral or casual commitment, it will be regarded as nudum pactum, which is having no legal impact under English law. On the other hand, if there is a contract between Simon and the Charity, which is duly corroborated by consideration, then Simon has the obligation to fulfil his promise. Why/how the law is relevant to Simon using cases (with full citation) to illustrate and support points made where appropriate? A promise which is given after the performance of an act is not enforceable under the English Contract Act. This is known as past consideration and has been acknowledged as not a good consideration. The main objective for this is that the performance or act in question is not part of any exchange or bargain, and it is rather gratuitous. Hence, any promise made subsequently will not form part of any contractual bargain and not enforceable. Those supposed agreements, which are without any consideration like one-sided undertakings, which may be binding a party morally but not enforceable under the contract law. In the eighteenth century, an effort was attempted by the courts in UK to define consideration so as to include some pre-existing moral commitments. In specific ...Download file to see next pagesRead More
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