What is consideration and when the requirement of consideration?

Consideration means an act forbearance or promise by one party to a contract that constitute the price for which he buys the promise of the other. In Tanzania consideration is defined in section 2(1)(d) of the Law of Contract Act, Cap. 433. The definition of consideration under the Law of Contract Act, suggest that consideration is for the promise given and it may be in the form of an act and abstinence or promise.

Note: under Law of Contract Act, consideration must move from either a promise or any other person. 

Requirements of Consideration are: 

1). Consideration must be real i.e it must have something; 

2). Consideration need not be adequate i.e Court will not interfere with bargain freely reached by the parties; 

3). Consideration must move from promisee or (under the Law of Contract Act any other person); 

4). Consideration must not be passed i.e. when one party has performed an act before other party’s promise was made/agreed; 

5). Consideration must be illegal i.e. it must not be contrary to rue or immoral; 

6). Consideration must not be vague, i.e the general rule is that, promise by a contracting party must be clear and definite; and 

7). Consideration must possible of performance i.e. promise to do something which is impossible can not be binding.