Consideration Flashcards
What are the steps for consideration?
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
What is consideration?
Where there must be a benefit and detriment to each party for there to be a contract: contracts are exchanges, not gifts
Which case shows the definition of consideration?
Currie v Misa
What does executory mean?
Promises are exchanged
What does executed mean?
Promises are completed
What does it mean by consideration needs to be sufficient, not adequate?
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
Which case shows sufficient consideration?
Thomas v Thomas (£1/year for rent)
Chappell v Nestle (wrappers)
Which case shows sufficient consideration must be real and have some value? (contrasts Ward v Byham)
White v Bluett (natural love and affection in the form of not complaining)
Which case shows sufficient consideration doesn’t have to be real and have some value? (contrasts White v Bluett)
Ward v Byham (natural love and affection in the form of being well looked after)
What is past consideration?
Consideration for something that’s already been done (think retrospectively)
Which case shows past consideration is not consideration?
Re McArdle
What is the exception to the past consideration rule?
When there is an implied promise to pay for the task (ie. if they requested the task to be done)
Which case shows that you have to pay for tasks you requested?
Re Casey’s Patent
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?
Lampleigh v Braithwait
What does it mean by consideration must move from the promisee?
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)
Which case shows consideration must move from the promisee?
Tweddle v Atkinson
Which case shows performing a pre-existing duty cannot be the consideration for a new contract?
Collins v Godefroy (there was a statutory duty)
What is the exception to the rule that performing a pre-existing duty cannot be the consideration for a new contract?
If there is an extra element required for a new payment, then it is consideration
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?
Glasbrook v Glamorgan CC
Williams v Roffey
Which cases are opposites, showing tasks becoming more dangerous can/cannot become consideration?
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
Which case shows consideration may be found where contractual duties are owed to a third party?
Scotson v Pegg
Shadwell v Shadwell
Which consideration rule is not needed but might help with evaluation?
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
