Hi guys, I have a few questions relating to considerations in contract law, if anyone could clarify these issues, that'd be good, thanks
In a bilateral contract each party is both a promisor and a promisee.
Example:
On 1 January Albert promises to sell his car to Beryl for $10,000. The car is to be given to Beryl on 1 February; on the same day Beryl is to give Albert the money.
So does that mean in this case, Albert is both a promisor and a promisee? Ie, he is a promisor because he promises to sell his car in exchange for Beryl's consideration (which in this case is the $10000). However, he is also a promisee because he gives consideration (selling his car) in exchange for Beryl's promise of $10000.
Is my understanding correct? Because I read that a consideration must move from the promisee, so does that mean in a bilateral contract, both parties will provide considerations because both can be considered as promisees?
Also for a unilateral contract which my book has defined as:
A unilateral contract is one in which an offer is made inviting acceptance by actual performance rather than by a promise. Eg, the offer of a reward for the return of a lost dog is accepted by the return of the dog
So say, person A offers a reward of $100 for the return of his lost dog. Then Person A would be the promisor and person B (who finds the lost dog and returns it) would be the promisee. Now when the promisee returns the dog, he gives consideration to person A (ie, the dog), so person A has to fulfill his side of the agreement and give the reward of $100 to person B. But doesn't this $100 also constitute a consideration? However I thought the consideration only flows from the promisee to the promisor, but then why in this case, there is a consideration flowing from the promisor to the promisee as well?
Thanks