55Introduction
In this chapter we complete our study of the essential requirements for a valid
contract by looking at consideration and intention.
Consideration is what both parties bring to a contract and the key principle to
remember is that it has to be sufficient but not necessarily adequate.
Agreements between family members are presumed not to have the intention
of being legally binding, but those between strangers or businesses do have
that intention.
Promissory estoppel and privity of contract are important concepts that could
be easily used in an exam question to confuse the situation. Make sure you
understand both concepts.
Finally we consider the impact of technology on contracts by examining
electronic contracts. There is not much case law in this area so keep an eye on
the press for developments.
Topic list Syllabus reference
1 Consideration B1(e)
2 Adequacy and sufficiency of consideration B1(f)
3 Promissory estoppel B1(e)
4 Intention to create legal relations B1(h)
5 Privity of contract B1(g)
6 The electronic contract B1(a)