consideration

Question 1

what is consideration?

Question 2

what are the rules of consideration?

Answer 2

• Consideration need not be adequate but must be sufficient
• Past consideration is not good consideration
• Consideration must move from the promisee
• Performing an existing duty cannot be the consideration for a new contract
• Consideration may be found where contractual duties are owed to a third party
• A promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration

Question 3

Consideration need not be adequate but must be sufficient

Question 4

Consideration need not be adequate but must be sufficient - cases

Answer 4

Thomas v Thomas (1842)

Chappell v Nestle Co. Ltd (1960)

White v Bluett (1853)

Ward v Byham (1956)

Question 5

Past consideration is no consideration

Answer 5

Consideration has no value where it has already been done at the time
the agreement was made

Re McArdle (1951)

Question 6

exceptions to rule 2 of consideration

Answer 6

There is an exception to this rule when there is an implied promise to pay for a particular task