Rules of consideration – Property agent in Singapore
(1) Consideration need not be adequate so long as it has some value. For real estate transactions, consideration must be money (Seah Kiat Seng v Amtel Exports Pte Ltd [1991] 1 SLR 311). So, is S$1 a good consideration? Yes, it is as it has some value. Property agent in Singapore.
(2) However, consideration must be sufficient. In the eyes of the law, so long as the consideration is something the law can recognises and enforces, it does not matter how small the value that consideration is.
(3) Past consideration is no consideration.
(4) Consideration must move from the promisee to the promisor. Consideration that does not move from the promisee is not sufficient consideration. The person to whom the promise is made must provide the consideration. In real estate transactions, the vendor is the promisor and the purchaser is the promisee. If a purchaser provides no consideration for a vendor’s promise of a sale of property, the purchaser cannot sue on that promise.
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