Consideration

Question 1

what is consideration and what case supports this?

Answer 1

a benefit to one party or a detriment to the other

Currie v Misa 1875

Question 2

3 types of consideration

Answer 2

executory
executed
past consideration

Question 3

what is executory consideration

Answer 3

a promise to do something in the future

Question 4

what is executed consideration

Answer 4

an act wholly performed at the time the contract is made

Question 5

what is past consideration

Answer 5

something already done before the promise was made = not valid

Question 6

4 rules for consideration

Answer 6

must move past the promisee (privity of contract)

must not be in the past

must not be vague

need not be adequate but must be sufficient

Question 7

Past consideration is not valid consideration case?

Answer 7

Re McArdle 1951

Question 8

exception to the past consideration rule and case

Answer 8

payment of services - Lampleigh v Braithwaite 1615

Question 9

consideration must not be vague case

Answer 9

white v bluett 1853 - cease from complaining

Question 10

need not be adequate but must be sufficient case

Answer 10

Thomas v thomas 1842

Question 11

consideration must not be an existing duty - 3 duties?

Answer 11

public duty

contractual duty

debt

Question 12

case for existing public duty not amounting to consideration

Answer 12

Collins v Godefroy 1831 - if the promisee performs a legal duty and nothing more this is not sufficient consideration

Question 13

case for existing contractual duty not amounting to consideration

Answer 13

stilk v myrick 1809

Question 14

what is the exception to an existing contractual duty not amounting to consideration

Answer 14

if the act incurs extra risk then consideration is valid - Hartley v Ponsonby 1857

Question 15

what is the rule for an existing debt

Answer 15

the pinnel’s rule 1602

Question 16

what is the pinnel’s rule

Answer 16

payment of a lesser sum will not discharge the duty to pay a higher sum - full amount can be asked at any point even after part payment

Question 17

4 exceptions to pinnel’s rule

Answer 17

1) where the debtor pays off early before the due settlement date
2) where the debtor pays the creditor in a more convenient place
3) where the debtor gives something else along with a part payment
4) where a third party pays the debtor’s debt

Question 18

what is promissory estoppel

Answer 18

it is a defence where a party has relied on the promise made, it was reasonable to assume they would have done this - looking to claim damages for the reliance on this promise

Question 19

case for promissory estoppel

Answer 19

combe v combe 1951