Consideration Flashcards
Executed
Consideration that has already been completed
Executory
Consideration in a contract that has not yet been completed
Rules of Consideration
- Sufficent but not adequate value
- Past consideration is not valid
- A legal requirement to do something is not consideration
- Consideration is something you do for someone else
Chapel v Nestle
Nestle used wrappers as part of a promtion for a discount of records
Court held even though they had no intrinsic economic value, they still formed valid consideration
SUFFICENT NOT ADEQUATE
Re McArdale 1951
One of the children of the deaceased carried out improvements to the house.
Her siblings agreeded to pay (after work was already done) when the estate was settled.
Her siblings later refused to pay
Court held PAST CONSIDERATION IS NOT GOOD CONSIDERATION
Stilk v Myrick
Duirng a voyage 2 crew abandoed ship, captain offered reaminig crew a share of their pay if they could sail the ship back to London
Refused to pay
Court held crew had a pre-exsisitng duty to sail thus werent entitled to extra wages
Hartley v Ponsonby
Many of the crew deserted leaving the ship unseaworthy
Captain in order to presuade reaminging crew to man the vessel, offered them extra wages
He refused to pay
Court held as ship safe in port but unseaworthy, the sailors were within their rights to refuse to go to sea
THerefore by agreeing to continue for extra wages this consituted new contract
Pinnells Case 1602
Part Payment of a debt is not good consideration.
Unless both parties voluntarily agree to end contract with satisfactory comprimise
CLPT v High Trees
in 1940 CLTP agreeded to reduce rent until end of 1945 to prevent under-occupancy
When london had recovered they attempted to raise rent before end of 1945
Court held CLPT could not go back on its promise. As High trees relied on that promise
Promissary Estopple COurt made CLPT uphold promise
Promissary Estoppel
Allows Courts to stop a party going back on a promise the other party relied on
