Chapter 26- Consideration

Question 1

What is consideration

Answer 1

• This is when each side must promise to give or do something for the other party
• Consideration can take many forms such as a service, money or an object.
• originally contracts required a deed but through considerations, both parties show that they accept the terms.

Question 2

What is is executory consideration

Answer 2

This refers to when both parties have mutual promises and either parties haven’t performed their terms of the contract yet, this is to be done in the future.

Question 3

What is Executed consideration

Answer 3

This refers to when one party has done all that is required of them leaving the remaining terms to the other party, making it outstanding.

Question 4

What are the rules in consideration

Answer 4

• Must be sufficient but not adequate
• Must not be past consideration
• It must move from the promisee
• Love and affection is not sufficient enough to act as a consideration
• consideration must be legal

Question 5

What does it mean to be sufficient but not need to be adequate

Answer 5

• Sufficiency refers to what is being promised e.g a service
• however this service does not need to be adequate, the court does not need to decide whether it has been a good or bad bargain

Question 6

what does consideration must move from promisee mean

Answer 6

Someone cannot sue on a contract to which they are not a party. “The doctrine of Privity of Contract” rule

Question 7

Describe the performance of existing duties that are public duties

Answer 7

• If a person is obliged by legal status or by operation of law to carry out an obligation, which forms the basis of their consideration e.g a police man finding a watch in which there was reward but the police were merely carrying out their duty.
• the position can change however if they go beyond what their duty requires them of.

Question 8

Describe the performance of existing duties that are contractual duties

Answer 8

• Mere performance of an existing contractual duty cannot amount too sufficient consideration under a contract.

Question 9

Define Promissory estoppel

Answer 9

Promissory estoppel is a legal principle that prevents someone from going back on a promise they made, even if there isn’t a formal contract.

Question 10

What are the essential elements of promissory estoppel

Answer 10

• an existing contractual relationship should be there
• the claimant must have waived some of their rights
• The rights were waived knowing the defendant would rely on the waiver

Question 11

state the evaluative points for performance of an existing duty

Answer 11

• A valid consideration can happen if the person goes beyond what their duty requires of them
• Where a party does something in excess of their existing contractual duties
• a valid consideration occurs where the person receiving the benefit will ask for more so will have to pay more ( Practical benefits)
• If someone owes a duty to a third party for a new promise made by another party