Consideration in terms of a contract.

F

Family Guy

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I have a general question about consideration in terms of a contract. I understand what it is but I am wondering does there need to be a level of fairness about it
Example. If a person promised another person that they would look after their house and pay the bills for an unspecified length of time. The other person agreed to that.... maybe foolishly. But they agreed. The second person thinks now this was probably a stupid contract to allow someone stay in their house forever at little cost. But is the contract valid and unbreakable ?
 
Verbal contract is just as legal but harder to prove.

Re the person in your house; they are not paying rent so not a tenant but a guest so you can ask them to leave at any time.

If you are not happy with them there sort it out now, dont let it run on.
 
My understanding was always that consideration had to be sufficient but not necessarily adequate.
 
It may have been perfectly reasonable for the person to agree to someone looking after their house and upkeep in exchange for living there. However there are other factors which may make the contract seem grossly inadequate, in this case granting someone an unlimited period of time, usually a contract like this would have some sort of term
Also , if the person was in a vunerable state when they agreed to this, perhaps they are elderly, didnt have proper council, there may be a grounds for undue influence given the nature of the agreement, which would void the contract
 
You'd have to look into implied terms - the contract is open-ended, not permanent, and can be terminated after reasonable notice. It might be better to think of it as a licence rather than a contract, as the bills would be primarily usage bills (electricity, gas, water, refuse etc). Again, a licence can be ended on reasonable notice.
At the absolute limit, it may be considered to be a tenancy under the Residential Tenancies Act, and subject to the notice periods specified therein. That would also be a reasonable guide for what would be a "reasonable notice" if we view it as a licence.
 
If the contract has terms that are unconscionable, made by trick or mistake, illegal motives, made by undue influence, made by person of diminished mental ability, then it can be challenged. This list is not exhaustive.
 
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