01. Consideration. Flashcards
Consideration.
‘Something of value’ that each party to a contract gives or agrees to give to the other, usually payment or a promise to do something in return.
‘Something of value’ that each party to a contract gives or agrees to give to the other, usually payment or a promise to do something in return.
Consideration.
Currie v Misa (1875)
A valuable consideration in the sense of the law may consist either in some
Right, Interest, Profit or Benefit accruing to one party, or some
Forebearance, Detriment, Loss or Responsibility
given, suffered or undertaken by the other.
A valuable consideration in the sense of the law may consist either in some
Right, Interest, Profit or Benefit accruing to one party, or some
Forebearance, Detriment, Loss or Responsibility
given, suffered or undertaken by the other.
Currie v Misa (1875)
Currie v Misa (1875): VC* = R, I B or P (AtOP) or F, D, L or R (G S or U).
valuable consideration
Currie v Misa (1875): VC = R*, I B or P (AtOP) or F, D, L or R (G S or U).
right
Currie v Misa (1875): VC = R, I*, B or P (AtOP) or F, D, L or R (G S or U).
interest
Currie v Misa (1875): VC = R, I, B* or P (AtOP) or F, D, L or R (G S or U).
benefit
Currie v Misa (1875): VC = R, I, B or P* (AtOP) or F, D, L or R (G S or U).
profit
Currie v Misa (1875): VC = R, I, B or P (AtOP*) or F, D, L or R (G S or U).
accruing to one party
Currie v Misa (1875): VC = R, I B or P (AtOP) or F*, D, L or R (G S or U).
forbearance
Currie v Misa (1875): VC = R, I B or P (AtOP) or F, D*, L or R (G S or U).
detriment
Currie v Misa (1875): VC = R, I B or P (AtOP) or F, D, L* or R (G S or U).
loss
Currie v Misa (1875): VC = R, I B or P (AtOP) or F, D, L or R* (G S or U).
responsibility
Currie v Misa (1875): VC = R, I B or P (AtOP) or F, D, L or R (G S or U).*
given, suffered or undertaken
Currie v Misa (1875): VC = [R, I B or P]** (AtOP) or F, D, L or R (G S or U).
right, interest benefit or profit
Currie v Misa (1875): VC = R, I B or P (AtOP) or [F, D, L or R]* (G S or U).
forbearance, detriment, loss or responsibility
Currie v Misa (1875): VC = … or F, D, L or R (G S or U).
some right, interest, benefit or profit accruing to one party
Currie v Misa (1875): VC = R, I B or P (AtOP) or …
some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other
Dunlop v Selfridge (1915)
An act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.
An act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable.
Dunlop v Selfridge (1915)
Dunlop v Selfridge (1915): [A or F]** (OTPT) is the P for which the POTOIB. PTGFVIE.
An act or forbearance of one party.
Dunlop v Selfridge (1915): A or F (OTPT)* is the P for which the POTOIB. PTGFVIE.
or the promise thereof
Dunlop v Selfridge (1915): A or F (OTPT) is the P* for which the POTOIB. PTGFVIE.
price
Dunlop v Selfridge (1915): A or F (OTPT) is the P for which the POTOIB*. PTGFVIE.
promise of the other is bought
Dunlop v Selfridge (1915): A or F (OTPT) is the P for which the POTOIB. PTGFVIE*.
promise thus given for value is enforceable
A performed act constitutes … consideration.
executed
A promise to perform an act constitutes … consideration.
executory
Something that has already been done, and therefore can not constitute valid consideration.
Past consideration.
Past consideration.
Something that has already been done, and therefore can not constitute valid consideration.
Past consideration is …
no consideration.
A promise for a promise (can / can not) constitute valid consideration.
can
Consideration must have … value.
a
Consideration need only be sufficient, not adequate.
Consideration need only be …, not sufficient.
adequate
Consideration need only be adequate, not …
sufficient
Consideration need only be …
adequate
The law (will / will not) normally get involved in determining whether consideration is adequate.
will not
Performance of an existing duty does not constitute valid …
consideration
Valid consideration must be something … that which a contracting party is already obliged to do.
over and above
Valid consideration must be something over and above that which a contracting party is …
already obliged to do
A person required to attend court due to a subpoena can not …
support a contract with their attendance.
A ship’s crew required to to an immaterial amount of extra work due to desertions can not …
use the extra work as consideration to support a contract for extra payment.
The forbearance of an existing right (can / can not) constitute consideration.
can
A promise to waive part of a debt must be supported by additional … by the debtor.
consideration
Acceptable consideration for waiver of part of a debt: AC* (G or S), AP, BBC, PBA (IOALS)
alternative consideration
Acceptable consideration for waiver of part of a debt: AC (G or S)*, AP, BBC, PBA (IOALS)
Acceptable consideration for waiver of part of a debt: AC (G or S), AP*, BBC, PBA (IOALS)
advance payment
Acceptable consideration for waiver of part of a debt: AC (G or S), AP, BBC*, PBA (IOALS)
bargain between creditors
Acceptable consideration for waiver of part of a debt: AC (G or S), AP, BBC, PBA (IOALS)*
payment by another (including a lesser sum)
Pinnel’s Case:
Payment of a lesser sum … in satisfaction of a greater, cannot be any satisfaction for the whole
But the gift of a horse, hawk, or robe, etc. in satisfaction is good.
on the day
Pinnel’s Case:
Payment of a lesser sum on the day in satisfaction of a greater, cannot be any satisfaction for the whole.
But the gift of a … etc. in satisfaction is good.
horse, hawk, or robe,
The principles of Pinnel (do / do not) apply after a lapse of time.
do
The acceptance of a lesser sum from a third party (does / does not) give complete discharge from a debt.
does
The creditor was not entitled to payment from that third party under the oringinal contract. It therefore constitutes valid consideration.
A sweet wrapping or peppercorn (can / can not) be deemed valid consideration.
can
Consideration need only be sufficient, not adequate.
A police force (can / can not) demand additional payment for duties over and above those required by law.
can
Such duties, for example protecting a coal mine, form additional consideration to support a contract for additional payment.
Work done with NO inplicit promise of a reward, for example renovating a house without being asked to do so (can / can not) form consideration.
can not
Past consideration is no consideration.
A contract requiring only one way consideration.
Specialty contract.
Specialty contract.
A contract requiring only one way consideration.
If a promise is implied, for example that “see somebody right” for appealing to the King for a parton, this (can / can not) constitute valid consideration.
can
The situation in which a promise is made which is intended to create legal relations and which, to the knowledge of the person making the promise, is going to be acted on by the person to whom it is made and which was in fact so acted on may later give rise to the situation of …
Promissory estoppel.
If a party leads another party to believe that he will not enforce his strict legal rights, even in the absence of a separatee contract with new consideration, then the courts will prevent him from doing so at a later stage.
Promissory estoppel.
Promissory estoppel.
If a party leads another party to believe that he will not enforce his strict legal rights, even in the absence of a separate contract with new consideration, then the courts will prevent him from doing so at a later stage.
Promissory estoppel.
If a party leads another party to believe that he will not enforce his strict legal rights, even in the absence of a separate contract with new consideration, then the courts will prevent him from doing so at a later stage.
Promissory estoppel (is / is not) likely to apply in cases of duress, including that of a builder reluctantly accepting only part of the money due to him.
is not
