Consideration

Question 1

What is Consideration?

Answer 1

Both parties must give something

Question 2

What did Currie V Misa define consideration as?

Answer 2

‘Some right, interest, profit or benefit’ which is given to one party

Question 3

What is executed and executory consideration?

Answer 3

Executed = Consideration has been carried out
Executory = Consideration will be performed in the future

Question 4

What must consideration be?

Answer 4

Sufficient, but need not be adequate, there has to be an exchange of something of value (Chappel V Nestle)

Question 5

Is past consideration valid consideration?

Answer 5

No, past consideration has no value if it has occurred before the agreement is made (Re McArdle)

Question 6

What are the exceptions under past consideration?

Answer 6

Implied promise to pay(Re Casey’s patent) or when the matter is important(Lampleigh V Braithwaite)

Question 7

Will consideration be valid if there is already a pre-existing duty?

Answer 7

No (Stilk V Myrick)

Question 8

What are the exceptions to pre-existing duty?

Answer 8

Extra element required (Hartley V Ponsonby)
Avoid a detriment (Williams V Roffey)