2.3: Consideration Flashcards
What is consideration?
Every party in a contract must receive a benefit and suffer a detriment (gain something and lose something)
What must consideration be in the eyes of the law?
Need not be adequate but must be sufficient
What is meant by adequate and what is the courts view on this?
Used in normal meaning, acceptable, however the courts are not bothered if a good bargain exists, only if a bargain itself exists
What is meant by sufficiency?
Legal term, what is proposed must be real and have some actual value (e.g. a house being sold for £1 although not adequate is sufficient and would therefore be consideration)
What case shows us sufficiency?
Chappel v Nestle Co.
What is meant by past consideration and will this be considered by the courts?
Past consideration is no consideration, any consideration cannot come before the agreement, it must follow (e.g. if the D does a voluntary act and then tries to enforce a later promise to pay)
What case shows us past consideration is no consideration?
Re McArdle
What is the exception where past consideration will be considered by the courts?
Where one of the parties has made a request for the service without mention of pay, and then makes a promise later to pay, this can be enforced by the courts
What case gave us the exception to past consideration?
Lampleigh v Brathwaite
Who must consideration move from?
Must move from the promisee, the person to whom the promise is made
Can consideration be something you already had a duty to do and what case shows this?
No, consideration cannot come from a pre-existing duty, shown by the case of Stilk v Myrick
What is the exception where a pre-existing duty can form consideration and what case shows this?
If an extra element is required for the payment, Hartley v Ponsonby
