7.4 Student A


Sufficient consideration


In order for the consideration to be good enough to provide the basis for the formation of a contract it must be sufficient. This means that it must have some economic value, even if that economic value is minimal. If a person promises not to complain about something in return for some financial benefit, this promise has no economic value and is therefore not sufficient consideration.


This was decided in the case of White v Bluett (1853) 23 LJ where it was held that a promise by a son that he would stop complaining that he was being treated differently to his other siblings in return for his father releasing him from payment of a debt was not sufficient consideration and there was therefore no contract. Pollock CB stated that: ‘In reality there is no consideration. The son has no right to complain as the father can do what he liked with the money and the son abstaining from doing something he had no right to do is no consideration.’


7.4 Student B


Adequate consideration


Although consideration has to have an economic value, it does not have to be adequate. In other words, the consideration does not have to represent the realistic economic worth of what is given in return.


In Midland Bank v Green [1981] AC 513 the husband conveyed a farm to his wife for £500 even though the property was worth more than £40,000 in order to prevent his son from acquiring title to the property, following a family dispute. The House of Lords held that the wife was the purchaser under section 4(6) of the Land Charges Act and refused to imply into the section that the purchaser must provide valuable consideration.


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