Consideration Flashcards
What was defined in Currie v Misa?
Consideration is defined as “some benefit accruing to one party or some detriment suffered or undertaken by the other”
What are the general rules for consideration?
- Must be sufficient.
- Need not be adequate.
- Past consideration is no consideration.
- Consideration must move from the promisee.
What does it mean by ‘consideration must be sufficient’?
Must be real (exists) and valuable (has some value)
What was held in White v Bluett?
There was nothing of value and so consideration was not sufficient
What does it mean that ‘consideration need not be adequate’?
The bargain does not need to be a good bargain. They don’t need to be in agreement whether something is valuable
What was held in Chappell v Nestle Co?
The chocolate wrappers were part of the consideration and could have been consideration on their own, there didn’t need to be an additional payment
What does it mean by ‘past consideration is no consideration’?
Consideration has already been done before the agreement was made and it can’t be used as basis for a later promise
What was held in Re McArdle?
There was no contract because the promise was made after the work had been completed
What is the doctrine of implied asumpsit?
An exception to ‘past consideration is no consideration’ as there is an implied understanding that the task will require payment
What was held in Lampleigh v Brathwait?
Actions were important and so there was an implied fee
What was held in Re Casey’s Patent?
There was an implied understanding that the claimant would receive payment for work on the patents
What are the requirements for implied asumpsit?
- Express or implied request by A to B to perform the task
- Implied promise that A will pay B a reasonable amount for the performance
- B performs task
- A pays B for performance
What does it mean that consideration must move from the promisee?
A person can not sue or be sued under a contract unless they have provided consideration for it
What was held in Tweddle v Atkinson?
The husband cannot sue because he had given no consideration and was not a party in the agreement
What are pre-existing duties?
If A and B have a pre-existing contract, performance under that contract will not amount to consideration for the second contract (unless there is something extra required)
When are pre-existing duties relevant?
When:
- There is an existing contract with A.
- There is an existing contract with C, a third party
- There is an obligation imposed by law
What was held in Collins v Godefoy?
Lord Tenterden CJ held that as C was imposed by law to give evidence, money paid to him was not consideration
What was held in Stilk v Myrick?
Despite the captain’s promise, they agreed to do anything in emergency situations and so there was no consideration for additional money
What was held in Hartley v Ponsonby?
A promise to make further payment was sufficient consideration because the voyage was dangerous
What were Glidewell LJ’s guidelines in Williams v Roffey Bros and Nicholls?
- Agreement between A and B
- B doubts A will complete obligation
- B promises extra payment if A completes on time
- B obtains a benefit or obviates a disbenefit
- B’s promise is not given under economic duress or fraud
- The promise is legally binding if the promise to B is beneficial
