Consideration

Question 1

Consideration definition

Answer 1

Each party must receive a benefit and suffer a detriment of equal value in the eyes of the law

Question 2

Rules of consideration

Answer 2

1) Consideration does not need to be adequate but must be sufficient (Thomas v Thomas)
- love and affection are not seen as consideration unless it involves a legal right (White v Blueett)
2) Past consideration is no consideration (Re Mcardle)
- The law does not recognise volunteering as consideration
- Exception
> service is at the promisees request and will be paid later ( lampleigh v Braithwaite) (casey)
> A person is expected to be paid as they are an expert
3) Consideration must move from the promisee
- A third party cannot enforce a contract (Tweddle v Attkinson)
4) Fulfilling an existing duty cannot be consideration ( Collins v Godfree) unless what is given to the promisee is more than they wanted
> If the performance of the existing duty overlaps and brings additional benefit to the other party then it will be sufficient consideration ( Williams v Godfree)
5) Consideration may be given to a party even when the same contractual duties are owed to a third party (Scotson v Pegg)
6) A promise to accept part payment instead of the whole payment is not good consideration (Foakes v Beer)
- exceptions include bankruptcy and banks accepting part payment to a loan in order to receive part payment