Consideration

Question 1

Governed by

Answer 1

Common law

Question 2

Consideration requires each party to the agreement to give something to the other party by way of exchange

Answer 2

Currie v Misra

Question 3

Without consideration there would be no legally binding agreement

Answer 3

Thomas v Thomas

Question 4

Adequate consideration: adequate consideration exists when the things to be exchanged by the parties is acceptable to all of them

Answer 4

Thomas v Thomas

Question 5

Adequate consideration: it doesn’t matter that the things to be exchanged are of unequal value

Answer 5

Chappell v Nestle

Question 6

Sufficient consideration: sufficient consideration will exist if the thing to be exchanged are real and have some value

Answer 6

White v Bluett

Question 7

Sufficient consideration: the value can be nominal, as long as the thing has some value

Answer 7

Chappell v Nestle

Question 8

Sufficient consideration: promising to stop complaining was insufficient consideration

Answer 8

White v Bluett

Question 9

Sufficient consideration: promising to make a child happy was sufficient consideration

Answer 9

Ward v Byham

Question 10

Consideration must move from the promisee: consideration must move from the promisee to the promisor

Answer 10

Tweddle v Atkinson

Question 11

Performing a pre-existing duty: performing an existing obligation does not create new consideration for a new agreement, as the party is doing what they are expected to do

Answer 11

Stilk v Myrick

Question 12

Performing a pre-existing duty: However, if an additional element is provided, this can create new consideration and a new agreement for this

Answer 12

Ponsonby v Hartley

Question 13

Performing a public duty: a duty arising due to a public duty will not create new consideration for a new agreement as the party is doing what is required for their public duty

Answer 13

Collins v Godefroy

Question 14

Performing a public duty: however, if they go beyond what is expected of this public duty, new consideration is provided that leads to a new agreement

Answer 14

Glasbrook bros v Glamorgan County Council

Question 15

Obligation to a third party: a promise to do something as a part of a contract, which a party is already obligated to do, can be good consideration for a different party, if they make a promise to them to do it

Answer 15

Shadwell v Shadwell

Question 16

Past consideration: if a party makes a promise in relation to a task that is already performed, it is not legally enforceable, as past consideration is no consideration

Answer 16

Re McArdle

Question 17

Past consideration: the exception is if promisor makes an expressed or implied request for a specific task and there is an implied understanding that there will be remuneration for that task

Answer 17

Braithwait