Consideration and privity

Abstract

This chapter shows how the doctrine of consideration emerged as an amalgam of the factors which would justify bringing an action of assumpsit for nonfeasance. The principal factors were a benefit conferred on the promisor (the essence of a bargain) and a detriment suffered by the promisee (the essence of a tort founded on reliance). Though lacking coherence, consideration was the closest approach to a basic substantive principle of contract law. Closely connected with it was the doctrine of privity. There was much debate over this, and in particular whether it was necessary for a plaintiff to be privy both to the consideration and to the promise. The reported arguments show how far it was thought possible for parties to make enforceable contracts for the benefit of others.