Consideration

Question 1

what case define consideration

Answer 1

Currie v Misa- ‘some right, interest, profit or benefit accusing to one party or some detriment, loss or reasponibility given, suffered or undertaken by another)

Question 2

What is executed consideration

Answer 2

where the consideration has already been carried out

Question 3

what is executory consdieration

Answer 3

A promise to perform acts in the future (I will wash your car on Sunday if you pay me £10)

Question 4

What are the rules of consideration

Answer 4

1. consideration need not be adequate but must be sufficient
2. past consideration is not good consideration
3. consideration must move from the promisee
4. performing an existent duty cannot be the consideration for a new contract
5. consideration may be found where contractual duties are owed to a third party
6. a promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration

Question 5

Consideration need not be adequate but must be sufficient

Answer 5

The law does not concern itself with the equality of consideration:
Chappel v Nestle = chocolate bar wrappers were considered enough to be adequate consideration

Question 6

White v Bluett

Answer 6

love and affection is not consideration so the son still had to pay the debt

Question 7

Ward v Byham

Answer 7

Contradicts white v Bluett as in this case love and affection were considered consideration =

Question 8

Past consideration is not good consideration

Answer 8

Re McArdle = promise to make payment after work had been done on a bungalow - past consideration

Question 9

Lampleigh v Braithewait

Answer 9

Actions taken at the defendants request are likely to allow consideration to be sufficient

Question 10

Consideration must move from the promisee

Answer 10

The promisee must give some kind of consideration first
Tweddle v Atkinson = fathers agreed to pay young couple getting married. One died and his estate refused to pay. Other father sued but he hadn’t payed to claim failed

Question 11

Performing a pre-existing due cannot be consideration for a new contract

Answer 11

Stilk v Myrick = claim for extra wages failed as the crew agreed to do all they could in emergencies

Question 12

Harley v Ponsonby

Answer 12

Claim contradict Stilk v Myrick
19 of 36 crew members remained and so this was considered to be so much extra work that it amounted for good consideration for a new contract

Question 13

Consideration may be found were contractual duties are owed to third party

Answer 13

Shadwell v Shadwell = D promised to pay C 150 a year until his income as a barrister reach 600. In return he had to promise to marry Ellen but he had already promised to marry her
This was considered as good consideration so the contract could be enforce

Question 14

A promise to accept part-payment of an existing debt in place of the whole debt is not consideration

Answer 14

Arrises from Pinnel’s case ‘payment of a lesser sum of the debt cannot be satisfactory for the whole debt’

Question 15

Exceptions to Pinnels case

Answer 15

1. where there is agreement to end a contact and consideration that has been voluntarily acts upon. Thus accepting something other than money for the whole debt is good consideration even if its not equal to the whole debt.
2. the promissory estoppel - if one party agrees to vary the contract and the other relied on that promise then the promissory CANNOT go back on the agreement as he or she is esstoped from breaking the promise

Question 16

Promissory estoppel case

Answer 16

Property trust v High trees = D relied on the reduction in rent during the world war and acted on this promise. The owner had to accepted this reduction without question so they had both voluntarily acted = valid agreement.