Although consideration is often referred to as the 'badge of Essay

Although consideration is often referred to as the 'badge of enforceability' for a contract in English law, in assessing the - Essay Example However, under the doctrine of promissory estoppels, any party can recover what it has rightfully earned, or the value of detriment suffered by reliance on the agreement, even if a court decides there is no legal contract (MacMillan & Stone, 2013 p.27). Thus, consideration forms one of the fundamental elements of a legally binding agreement, and is often referred to as the ‘badge of enforceability’ for a contract in English law. However, in assessing the validity of a variation in the terms of an existing contract, consideration is but one line of argument. This is because: Consideration is regarded by the English courts as the principle way of determining the existence of a contract (MacMillan & Stone, 2013 p.34). The significance of consideration as a vital aspect of a contract in English law is that; it is through the existence of consideration, that the other essential elements of a legally binding agreement are fulfilled. ... However, while this aspect is a principal requirement in the English contract law, there are further assessments that might be made; in spite of the mere fact that consideration really existed in the contractual agreement, which then nullifies the agreement as unenforceable. Therefore, while consideration forms a fundamental building block as far as the English contract law is concerned, it has emerged that it is not indispensable, and thus there are circumstances under which the courts can regard a contractual agreement that did not entail consideration to be legally binding, while also nullifying a contractual agreement that involved consideration as unenforceable in law (Gillies, 1988 p.72). This simply means that, despite the fact that consideration is a cardinal requirement in the English contract law, it must be interpreted in the context of other principles of a binding contract, and thus consideration is but one line of argument. First, despite the fact that consideration cou ld really exist in a contractual agreement, there is limitation offered to the concept of consideration, which states that past consideration is not consideration (Busch, 2005 p.33). This legal requirement then makes consideration but one line of argument; because it clearly shows that the mere existence of consideration is not sufficient to make an agreement legally binding, since if consideration is past, the contractual agreement will be regarded unenforceable, despite the existence of the consideration (Schulze, 2007 p.49). This principle has been established and demonstrated in various case laws, which has served to show that consideration is a