Consideration Flashcards
What are the 4 rules of consideration
- Consideration must be sufficient, but need not to be adequate.
- Performance of an existing legal or contractual duty is not good consideration.
- Consideration cannot be given in the past
- Consideration cannot move from the promisee.
What is consideration?
Something of economic value being exchanged between parties.
What does sufficient and not adequate mean?
Sufficient - some economic value (even 1p)
not Adequate - the two things do not need to be of equal value.
What Chappell v Nestle co say?
Two things do not need to be adequate (of equal value).
What did Jones v Padvatton say?
Giving up something of value can be consideration. In the case the daughter gave up her job.
What did White v Bluett and Ward v Byham say?
White v Bluett - Love and affection does not have economic value.
Ward v Byham - Loving her child was consideration this is a standalone case and won’t be followed
What is the 2nd rule of consideration?
Where someone is only doing something they have to do under the law/contract, this is not good consideration.
What are the cases for there being an existing legal duty?
Collins v Godefroy - The Police officer had to appear in court already so was not giving anything extra.
Exception: Glasbrook bros. v Glamorgan CC - The police went beyond their legal duty so it was good consideration.
What are the cases for there being an existing contractual duty?
Stilk v Myrick - There was no extra work after the two crew members deserted, meaning they didn’t go beyond their contract and there wasn’t good consideration.
Exceptions:
Hartley v Ponsonby - Almost half the crew member deserted so there would be drastically more work and it was good consideration.
Williams v Roffey Bros - Williams was giving Roffey extra benefit by stopping him from having to pay a late fee and so had gone beyond the contract.
Scotson v Pegg - The original agreement was good consideration for the second agreement.
What is the 3rd rule of consideration?
Consideration cannot be given in the past
What did Re McArdle say?
Work completed before an agreement was not good consideration for the agreement. Consideration must be given after an agreement.
What happened in Lampleigh v Braithwaite?
Lampleigh obtained a pardon for Braithwaite. Although the consideration happened before the agreement, the importance of the pardon to Braithwaite meant he would reward anyone that helped him.
What did Re Casey’s Patents say?
It is reasonable for an employee to expect to be rewarded for their work.
What is the 4th rule of consideration?
Consideration must move from the promisee
What happened in Tweddle v Atkinson?
No consideration was given, so there is no right to enforce the agreement. A party cannot sue if they have given no consideration.
