Consideration

Question 1

Introduction?

Answer 1

Consideration is needed for every valid contract, consideration is where both parties give something to another by means of exchange.

Currie v Misa - Some right occurring to one party and some undertaking by another.

Question 2

Consideration need not be adequate but must be sufficient: Equal?

Answer 2

Thomas v Thomas - Consideration does not have to be equal, it is up to the parties to decide upon the value of something.

Question 3

Consideration need not be adequate but must be sufficient: Sufficient?

Answer 3

Ward v Byham - Consideration must be sufficient this means real and has some value.

Question 4

Consideration need not be adequate but must be sufficient: Giving something up?

Answer 4

Hamar v Sidway - Consideration can be giving something up.

Question 5

Past Consideration is not good Consideration: Before Agreement?

Answer 5

McArdle - Consideration has no value if it was already done prior to the agreement being made.

Question 6

Consideration need not be adequate but must be sufficient: Implied Promise?

Answer 6

Re Caseys Patents - If there is an implied promise from the defendant to pay for a particular task then the courts will recognise past consideration.

Question 7

Consideration need not be adequate but must be sufficient: Requested by other Party?

Answer 7

Lampleigh v Brathwaite - Where the act was requested by the other party.

Question 8

Consideration must move from the promise?

Answer 8

Tweddle v Atkinson - A person cannot sue or be sued under a contract unless they provide the consideration for it.

Question 9

Performing an existing duty is not consideration: Rule?

Answer 9

Stilk Myrick - Performing an existing duty does not give rise to consideration.

Question 10

Performing an existing duty is not consideration: Extra Element?

Answer 10

Hartley v Ponsonby - If there is an extra element to the duty consideration will exist.

Question 11

Performing an existing duty is not consideration: Gains benefit or avoids loss?

Answer 11

Williams v Roffey - If the defendant gains a benefit or avoids a loss then performing an existing duty will amount to valid consideration.

Question 12

Consideration Via a third Party?

Answer 12

One Party needs a 3rd party to fulfil their side of the consideration.

Shadwell - And the same consideration can be valid for different contracts.