Consideration

Question 1

What are the steps for consideration?

Answer 1

Define
Need not be adequate, must be sufficient
Past consideration is not consideration
Consideration must move from the promisee
Performing an existing duty is not consideration
Consideration can be found when duties are owed to a third party

Question 2

What is consideration?

Answer 2

Where there must be a benefit and detriment to each party for there to be a contract: contracts are exchanges, not gifts

Question 3

Which case shows the definition of consideration?

Answer 3

Currie v Misa

Question 4

What does executory mean?

Answer 4

Promises are exchanged

Question 5

What does executed mean?

Answer 5

Promises are completed

Question 6

What does it mean by consideration needs to be sufficient, not adequate?

Answer 6

Nothing has a finite value, so as long as both parties agree, it’s okay - the values don’t have to be equal - however it must have real value

Question 7

Which case shows sufficient consideration?

Answer 7

Thomas v Thomas (£1/year for rent)
Chappell v Nestle (wrappers)

Question 8

Which case shows sufficient consideration must be real and have some value? (contrasts Ward v Byham)

Answer 8

White v Bluett (natural love and affection in the form of not complaining)

Question 9

Which case shows sufficient consideration doesn’t have to be real and have some value? (contrasts White v Bluett)

Answer 9

Ward v Byham (natural love and affection in the form of being well looked after)

Question 10

What is past consideration?

Answer 10

Consideration for something that’s already been done (think retrospectively)

Question 11

Which case shows past consideration is not consideration?

Answer 11

Re McArdle

Question 12

What is the exception to the past consideration rule?

Answer 12

When there is an implied promise to pay for the task (ie. if they requested the task to be done)

Question 13

Which case shows that you have to pay for tasks you requested?

Answer 13

Re Casey’s Patent

Question 14

Which case shows that you don’t have to pay for tasks they did that you didn’t request but promised to pay for the task after they already completed the task?

Answer 14

Lampleigh v Braithwait

Question 15

What does it mean by consideration must move from the promisee?

Answer 15

A person cannot sue or be sued under a contract unless they provided consideration for the contract (ties to privity) (ie. unless both parties gain and lose)

Question 16

Which case shows consideration must move from the promisee?

Answer 16

Tweddle v Atkinson

Question 17

Which case shows performing a pre-existing duty cannot be the consideration for a new contract?

Answer 17

Collins v Godefroy (there was a statutory duty)

Question 18

What is the exception to the rule that performing a pre-existing duty cannot be the consideration for a new contract?

Answer 18

If there is an extra element required for a new payment, then it is consideration

Question 19

Which case shows a pre-existing duty can be consideration for a new contract if there is an extra element required for a new payment?

Answer 19

Glasbrook v Glamorgan CC
Williams v Roffey

Question 20

Which cases are opposites, showing tasks becoming more dangerous can/cannot become consideration?

Answer 20

Stilk v Myrick (not consideration as agreed to do anything possible in emergencies - not as many desertions)
Hartley v Ponsonby (is consideration as much more dangerous - 19/36 crew members remained)
Both required them to take on extra work

Question 21

Which case shows consideration may be found where contractual duties are owed to a third party?

Answer 21

Scotson v Pegg
Shadwell v Shadwell

Question 22

Which consideration rule is not needed but might help with evaluation?

Answer 22

A promise to accept part payment of an existing debt in place of the whole debt is not consideration (Pinnel’s case)
This means you can claim the remainder of a debt even if you previously agreed not to unless there is early repayment or payment in some kind