CONTRACT LAW — Consideration — Necessity of Consideration for Simple Contract — Failure to Pay Purchase Price as Breach
Ratio Decidendi
Per Mukhtar, JSC, in Chabasaya v. Anwasi (2010) NLC-123-238-2004(SC) at p. 10, paras. C–E:
"A contract in which consideration has not been met is one that can be said has been breached and is unenforceable as consideration is one of the terms of the contract. … Since the Appellant had not furnished any consideration he could not enforce the contract against the Respondent."
Explanation / Scope
This principle establishes that consideration is essential for a simple contract; failure to provide consideration renders the contract unenforceable. The principle applies in contract claims. It ensures that parties provide consideration. The principle reflects the doctrine of consideration. It prevents enforcement of contracts without consideration. The court must require proof of consideration. The principle provides guidance on the necessity of consideration.