Words and Phrases - "consideration for"

In finding that the purchase price paid by an Australian bottler for concentrate could not be recharacterized as a royalty, which under the Australian taxing act was relevantly defined as amounts paid or credited as consideration for the use of or the right to use various listed types of intellectual property, including trademarks, the majority stated (at paras. 160-161, footnotes omitted):

The word "consideration" has multiple meanings and shades of meaning. In the modern law of contract, "consideration" has developed as a concern with reciprocity, or a "quid pro quo" between an offered promise and acceptance. But another meaning of consideration which applied in circumstances broader than modern contracts, such as a conveyance or the making of a payment, was a "moving cause" or a "material cause" for the payment. In this broader, alternative sense, the "consideration" for a payment was the "purpose" of the payment or conveyance, or the "basis" or "condition" upon which it is made.

In Archibald Howie Pty Ltd v Commissioner of Stamp Duties (NSW), Dixon J explained that in s 66 of the Stamp Duties Act 1920-1940 (NSW) the word "consideration" refers to the "money or value passing which moves the conveyance or transfer", not simply a consequence or aspect of an offer and acceptance. Similarly, the phrase "consideration for" in the definition of "royalty" in s 6(1) of the ITAA 1936 is unlikely to be confined to whether there is a quid pro quo in the making of an offer and acceptance of that offer. The definition of "royalty" refers to an amount "however described or computed" and to an amount "to the extent to which" it is paid as consideration for the right to use intellectual property. The phrase "consideration for" in the definition of "royalty" in s 6(1) of the ITAA 1936 extends to the "basis", "purpose", or "condition" for a transaction by which one party confers a benefit upon another.192 Of course, whether a payment is a basis, purpose or condition "for" the conferral of the use of intellectual property will always depend upon what the parties have agreed. In that respect, the word "for" connotes a causal connection between the making of a promise to pay or confer some other benefit and the receipt of a right to use the intellectual property. That connection will be satisfied when the giving of the promise can be seen to be the basis for, or a condition of, that receipt. In the present case, it cannot.