consideration

Question 1

consideration

Answer 1

• the price paid for a person’s promise

Question 2

executed consideration

Answer 2

• an act in return for a promise
• occurs when a party performs their part of the contract at the moment they enter into it

Question 3

executory consideration

Answer 3

• a promise in return for a promise
• occurs when a party promises to perform some future obligation

Question 4

consideration need not be adequate but it must be sufficient (rules of consideration)

Answer 4

• parties can contract on any terms they choose so the courts are not interested in whether each party has a good ‘deal’
• thomas v thomas

Question 5

must be consideration (rules of acceptance)

Answer 5

• consideration must be real and have some value (white v bluett)

Question 6

past consideration is no consideration (rules of acceptance)

Answer 6

• the consideration for a contract cannot be something that either party already done (re mcardle)
• rule of implied assumpsit: circumstances imply an obligation to perform a certain act (lampleigh v braithwait)

Question 7

consideration must move from the promisee (rules of acceptance)

Answer 7

• the parties to the contract must provide the consideration themselves
• consideration cannot be something to be done by a third party
• tweddle v atkinson

Question 8

performing an existing duty cannot be the consideration for a new promise (rules of acceptance)

Answer 8

• if x has a duty to do something then fulfilling that pre-existing duty cannot be consideration
• stilk v myrick
• more than expected (hartley v ponsonby)

Question 9

a promise to accept part payment of an existing debt in place of the whole debt cannot be enforced as there is no consideration for the promise

Answer 9

• d&c builders v rees

-exception: accord and satisfaction - if the receiving party agrees to receive something other than money from the debtor then this may amount to consideration