Consideration Flashcards
what is consideration and what case supports this?
a benefit to one party or a detriment to the other
Currie v Misa 1875
3 types of consideration
executory
executed
past consideration
what is executory consideration
a promise to do something in the future
what is executed consideration
an act wholly performed at the time the contract is made
what is past consideration
something already done before the promise was made = not valid
4 rules for consideration
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
Past consideration is not valid consideration case?
Re McArdle 1951
exception to the past consideration rule and case
payment of services - Lampleigh v Braithwaite 1615
consideration must not be vague case
white v bluett 1853 - cease from complaining
need not be adequate but must be sufficient case
Thomas v thomas 1842
consideration must not be an existing duty - 3 duties?
public duty
contractual duty
debt
case for existing public duty not amounting to consideration
Collins v Godefroy 1831 - if the promisee performs a legal duty and nothing more this is not sufficient consideration
case for existing contractual duty not amounting to consideration
stilk v myrick 1809
what is the exception to an existing contractual duty not amounting to consideration
if the act incurs extra risk then consideration is valid - Hartley v Ponsonby 1857
what is the rule for an existing debt
the pinnel’s rule 1602
what is the pinnel’s rule
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
4 exceptions to pinnel’s rule
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
what is promissory estoppel
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
case for promissory estoppel
combe v combe 1951
