Consideration

Question 1

What is C defined as?

Answer 1

The price for which a promise is bought (what parties put into the contract).

Question 2

What is executed consideration?

Answer 2

An Act in return for a promise.

Question 3

What is executory consideration?

Answer 3

A promise in return for a promise.

Question 4

What are the rules of consideration?

Answer 4

Consideration need not be adequate but must be sufficient.
- It must be real and have some value (Thomas v Thomas)
- Consideration must move from the promisee (Tweedle v Atkinson)
- Past consideration is not good consideration (Re McArdle)
- Past consideration can be good consideration if there is a request for a particular task and an understanding the task should be paid for (Lampleigh v Brathwait)
- Performing a pre-existing duty cannot be the consideration for a new contract (Stilk)
- A promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration (Foakes).