Consideration Flashcards
Consideration definition with case
Something of value both parties offer in exchange, can be a promise to pay/do/give (Dunlop tyres v selfridges)
Whats required when entering a legally enforceable contract
That both parties have provided consideration
What is executed consideration
Act Has been performed at point of consideration
What’s executory consideration
Act yet to be performed
Name all the principles of consideration (4)
- sufficient not adequate
- past consideration
- move from promisee
- pre-existing duty
Explain the principle of adequacy and sufficiency
Must be sufficient not adequate, not have to be equal value to other parties consideration
Whats the case example for adequacy and sufficiency
Thomas v Thomas
Explain the principle of past consideration
Past consideration not sufficient, consideration must be after the agreement
What’s the case examples for past consideration
Re McArdle
Re Casey’s patent
Explain the principle of moving from the promisee
Consideration must move from the promisee, cant sue/be sued under contract unless provided consideration
Whats the case example from moving from the promisee
Tweedle v Atkinson
Explain the principle of pre existing duty
New consideration is required in order for terms of contract to be changed
Pre existing duty cant form consideration for new contract with existing party
Can form consideration for new contract when its with a new party
Under pre existing duty, name the case where it states that a pre existing duty can’t form consideration when its with an existing party
Stilk v myrick
Name the case where it states that a pre existing duty can form consideration when its with a new party
Scotson v pegg
