consideration Flashcards
what is consideration
the price for which a promise is bought
when is consideration used by the courts?
when they need a clear way to tell when a promise should be enforced
what are the rules on consideration?
consideration must not be past, consideration must move from the promise, consideration need not be adequate, consideration must be sufficient
consideration must not be past, but what can it be?
executed or executory?
what is executory consideration?
a promise to do something in the future
what is executed consideration?
where there is an act in return for a promise
what is past consideration?
something which has already been given
what is the exception to the rule on past consideration?
implied promises
what happened in the case of Roscorla v Thomas and McArdle
claimant did considerable repairs and upkeep to her mother in law’s house. after she did the work the family agreed they would pay her from the mother’s estate when she dies. when it came to needing to enforce the agreement the courts refused, they said the contract was not supported by sufficient consideration because she was offering past consideration
what does the rule of consideration must move from the promise mean?
if you want the benefit of a promise, you must have paid for it. if the promisee wishes to enforce the promise against the promisor they can only do so if they have provided valid consideration
what case demonstrates that consideration must move from the promise?
Tweddle v Atkinson - claimant could not sue for money when the consideration was provided by his father and not him
what constitutes sufficient consideration?
consideration must have some economic value but doesn’t necessarily have to represent fair market value. there doesn’t need to be equality of bargain
what did Chappell v Nestle and White v Bluett demonstrate about sufficient consideration?
Nestle - chocolate wrappers were sufficient consideration. they had monetary value as they represented the purchase of the bars
White - promising to stop complaining was not sufficient consideration as there was no economic value
what are the three issues where consideration is not valid/sufficient?
pre-existing public duties (cannot offer something the law says you have a duty to do as consideration), pre-existing contractual duty (cannot offer as consideration something they have already promised to do under an earlier contract with the same person), part payment of a debt
what are the exceptions that Pinnel’s case found to part payment of a debt not being sufficient consideration?
early part repayment at creditor’s request, repayment of part on due day at a different place at creditor’s request, part repayment with some item of property at creditor’s request
