Business Law: Frustration - Essay Example

The effect of the mistake is that if the contract is void at law then there is no remedy of specific performance available either. (Nutt v Read (1999) The Times, December 3.) Consideration is an integral part of a contract essentially what really makes an agreement a fully enforceable contract. It has been defined in many case law authorities such as the statement of Lush J. in Currie v Misa (1875) LR 10 Exch 153: " some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.

"Another has been given by Frederick Pollock, approved by Lord Dunedin in Dunlop v Selfridge Ltd [1915] AC 847, is as follows: "An act or forbearance of one party, 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."Consideration is called "executory" where there is an exchange of promises to perform acts in the future and if one party makes a promise in exchange for an act by the other party, when that act is completed, it is executed consideration.

The court will however not inquire into the quantity or value of consideration here (Chappell & Co Ltd v Nestle Co Ltd [1959] 2 All ER 701.).Secondly, the law as it stands requires that the consideration must move from the promisee or that it was provided for him. Finally, it does not have to move to the promisor.(Price v Easton (1833) 4 B & Ad 433)..