Modifications of Common Law Rules on Consideration by Ghana's Contract Act of 1960

Introduction

Discussion on modifications of common law rules on consideration by Ghana's Contract Act of 1960 (Act 25).
Review of definition and principles of consideration: consideration may not be adequate but must be sufficient.

Sufficiency over Adequacy: Courts do not assess the adequacy of consideration, only its sufficiency.
Some conducts at common law did not amount to valid forms of consideration.

Common Law: Promise to keep an offer open for acceptance is not binding without consideration from the offeree (Cited: Cledg v. Banks 1828).
Ghana's Act (Section 8-1): Such promises are binding even if the offeree provides no consideration.
- Example: Offer to sell a car open for a specified time can be binding.

Common Law: Promise to accept part payment as full settlement is not binding without new consideration (Cited: Pinnel's Case, Foakes v. Beer).
Ghana's Act (Section 8-2): Such promises are binding without additional consideration.
- Example: Creditor waiving part of debt without new consideration.

Common Law:
- To Promisor: Performance of existing duties does not constitute new consideration.
- Public Duty: Performing a public duty does not serve as consideration (Cited: Collins v. Godefroy).
- To Third Party: Performance to a third party can be valid consideration.
Ghana's Act (Section 9): Performance of an existing legal duty can be sufficient consideration for a new promise.
- Example: Police officer already bound to protect cannot claim new consideration.

Common Law: Consideration must come from the promisee (Cited: Tweddle v. Atkinson).
Ghana's Act (Section 10): Allows consideration provided by someone other than the promisee.
- Example: Agreement benefits a third party who did not provide consideration.

Reviewed how the Ghana's Contract Act of 1960 modifies the strict common law rules on consideration.
Key Takeaways: Improvements focus on fairness and practicality, allowing for binding agreements without strict adherence to consideration requirements as seen in common law.
- Promises to keep offers open and part payment agreements are binding without consideration.
- Existing obligations can serve as consideration under certain circumstances.
- Consideration does not need to come from the promisee in Ghana.

This lecture highlights significant reforms in contract law, emphasizing Ghana's flexible approach to the doctrine of consideration.