Varying of Contract Terms Case Study Example | Topics and Well Written Essays - 1750 words

Varying of Contract Terms - Case Study Example Consideration is an important principle for a contract as the English courts take that into when determining the legal enforceability of a contract. McKendrick states that the purpose of consideration is to give the ‘badge of enforceability’ to agreements. The definition of consideration can be found in the case of Currie v. Misa which revolves around the concept of benefit to the promisor, or detriment to the promisee, thus the requirement is mutually exclusive.Another important aspect of consideration is that it must be sufficient and need not be adequate that is it must be something which the court would consider to be legally capable of constituting consideration. The position that was found to be problematic for business practices in respect of consideration whether an existing obligation could be treated as good consideration or in other words could the terms of the contract be changed without any additional consideration being provided for such variance. The three aspects that require an analysis there are possibly three different types of existing obligation which can arguably constitute to be a consideration. The first one is of an obligation which arises under the law, and there are independent of any contract. The second one is that of obligations that are owed under a contract with a third party. Finally, the obligations which are existent by way of a contract with the person who makes the new promise, for which it is alleged that the existing obligations should be held to be a good consideration.