Forming enforceable contracts—consideration


Published by a UUÂãÁÄÖ±²¥ Dispute Resolution expert
Practice notes
In-house

Forming enforceable contracts—consideration


Published by a UUÂãÁÄÖ±²¥ Dispute Resolution expert

Practice notes
In-house
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This Practice Note examines the doctrine of consideration and the key role it plays in English law in determining whether a contract is enforceable.

A promise will only be capable of being contractually enforced if it is either made in a deed or made in exchange for something of value, known as 'consideration'. This Practice Note considers what amounts to valid consideration.

Note: settlement offers made under CPR Part 36 operate outside the general rules of contract law and are governed by the specific regime set out in CPR 36. See Practice Notes: Part 36 offers—what are they, why make them? and Part 36 offers—how to make a valid Part 36 offer.

For guidance on the specific Requirements for documenting promises by way of a deed, see Practice Note: Deeds.

What is consideration?

Consideration is a key ingredient for an enforceable contract. It is concerned with what one party gives or promises in exchange for a promise or performance from another party. It requires 'something of value' to be given for the promise.

There is a rule

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Part 36 definition
What does Part 36 mean?

A part 36 offer is a settlement offer made under Part 36 of the cpr which, if made in accordance with those provisions and depending on the circumstances of its acceptance or rejection, can afford costs consequences, both advantageous and adverse.

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