Consideration

Question 1

Practical benefit

Answer 1

If performance of an existing contractual duty confers a practical benefit on a party which is offering an additional benefit in return, then this can be good consideration for the offer of the benefit. eg. Will pay you £100 to finish the work on time because would otherwise have to pay penalty for delay to third party. Sufficient consideration.

Question 2

Part-payment by another method

Answer 2

There is a general rule that an agreement to accept part payment in full and final settlement of a debt is not supported by consideration and so does not preclude the debtor from subsequently claiming the balance. However, the common law has established a number of exceptions to this general rule, usually where some additional benefit is conferred on the debtor in consideration for their promise to forego the balance of their debt. An example of this is payment by another method. Example question - £250 owed, watch worth £200 amounted to sufficient consideration.