Consideration

Question 1

Give the intro for consideration

Answer 1

D may argue that consideration was given between himself and C for ___.
Consideration is an exchange of things with economic value. There are five rules for consideration.

Question 2

Give the first rule for consideration

Answer 2

Firstly, consideration must be sufficient, but need not be adequate. This means the things exchanged must have economic value but it need not be equal, like the £1 and the house in Thomas v Thomas.

Jones v Padvatton shows giving up something of value can be consideration.

Question 3

Give the second rule for consideration

Answer 3

Secondly, consideration must not come from the past.
In Re McArdle, C completing the work prior to the agreement being made did not count as consideration for the money.
However, Lampleigh shows that past consideration can count if there was an implied promise of payment.

Question 4

Give the third, fourth and fifth rules for consideration

Answer 4

The next rule is that if D already has a legal or contractual duty of something then it is not good consideration.

Legal
- Collins shows doing something already required by law is not good consideration, but Glasbrook shows going beyond this legal duty can be good consideration.

Contractual
- In Stilk v Myrick, covering the work of crew members who left was not good consideration for extra wages, but in Hartley v Ponsonby taking on extra danger and work was.

Additionally, if there is an extra practical benefit this can be good consideration, such as not having to hire new workers in Williams v Roffey.

Question 5

Give the eval points for consideration

Answer 5

• Sufficiency creates certainty and freedom of contract as something of value will always be consideration but parties can choose anything they want. But, risk of inequalities of bargaining power.
• Situations where it is hard to know what counts as consideration, such as Williams v Roffey. But, letting parties make contracts without obvious things of value respects freedom of contract.
• Judges tend to make logical exceptions as in Collins the officer showing up would have been good consideration as they agreed it was, but the exception about going beyond one’s duty from Glasbrook was used successfully.

Question 6

Outline the consideration structure

Answer 6

• Intro
• Sufficient, not adequate
• Consideration not from past
• Legal duty
• Contractual duty
• Extra benefit