Agreement Consideration

At Roscorla vs. Thomas, Roscorla was awarded a contract to buy a horse from Thomas for $30. After the sale, Thomas Roscorla promised that the horse would be healthy; the horse proved to be evil. It was found that Roscorla was unable to obtain the undertaking, as the consideration for the sale agreement for the purchase of the horse had been concluded at the time of the undertaking; In a sense, the reflection was “exhausted.” [16] Consideration can be seen as the concept of value offered and accepted by individuals or organizations entering into contracts. Anything promised by one party to the other in entering into a contract can be considered a “compensation”: if A signs, for example, a contract to buy a car B for $5,000, A is the consideration of $5,000, and B`s consideration is the car. The same applies when the consideration is a benefit for which the parties had previously entered into a contract. For example, A agrees to paint B`s house for $500, but halfway through work, A B says it won`t end unless B increases the payment to $750. If B agrees and A completes the work, B will still only have to pay the original $500, because A already had a contractual obligation to paint the house for that amount. Contracts cannot be maintained if a party`s consideration is illegal. “Past reflection is not a consideration”: reflection must be “executory” or “executed” but not “past”; that is, consideration must be given in the present or in the future, but the things that have been done before cannot be properly taken into account. [6] Suppose A is a screenwriter and B runs a film production company.

Said to B, “Buy my script.” B says, “What if you did – I`m going to pay you $5,000 so you don`t let anyone produce your film for another year. If I produce your film this year, I will give you $50,000 more, and no one else will be able to produce it. If I don`t produce your film this year, you can go. If these two are then arguing, the question of whether there is a contract will be answered. B had an option contract – he could choose to produce the script or not. B`s idea was the $5,000 down and the possibility of $50,000. A`s reflection has been handed exclusive rights to the film script for at least a year. Promises made under seals (acts) should not be taken into account.

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