Consideration Flashcards
Definition of Consideration - Pollock
‘an act of forebearance, or the promise thereof, is the price of which the promise is bought’
McDonnell v Ring
contracts under seal do not need proof of consideration
Currie v Misa
for valid consideration one party must profit or bgenefit while the other must suffer a loss or detriment
McCoubrey v Thompson
a person can only enforce a promise if they themselves have provided consideration
McEvoy v Belfast Banking Co
father had deposit with bank in a joint account with his son – he died – executors were allowed take money by bank which
they lost – son took claim
where one party makes a contract on behalf of another and himself,
then consideration supplied by one will suffice to enable the other to
enforce the contract
McDonnell v Ring
Adequacy
consideration need not be adequate but sufficient and can never be past
ACC Bank v Dillon
Adequacy
Courts will rarely condemn a bargan for being inadequate
Bolton v Madden
Adequacy
the adequacy of consideration is for the parties to decide not the courts
Thomas v Thomas
Adequacy
1 euro annual rent deemed adequate
Chappell v Nestle
Adequacy
a contracting prty can stipulare what consideration he chooses
O’Neill v Murphy
Sufficiency
consideration need not be adequate but it must be sufficient - sufficien consideration is tangible with readily ascertainable value
prayers not valid consideration
Hamer v Sidway
Sufficiency
- Acts of forebearance
not drinking and smoking - right to do so normally - so this is valid consideration
O’Keefe v Ryanair
Sufficiency
- Acts of forebearance
waiving anonymity and enterign media campaigns - valid consideration
Collins v Godfrey
Sufficiency
- Performance of pre-existing duty
loss of time attending court - not valid consideration - normal public duty
Harris v Sheffield
Sufficiency
- Performance of pre-existing duty
police given more money to protect particularly dangerous areas - valid consideration
McKerring v Minister for Agriculture
Sufficiency
- Performance of pre-existing duty
adhering to strict conditions of a medical trial - valid
Stilk v Myrick
Sufficiency
- Pre-existing contractual relationship
seamen - motivated by extra payment to return home with ships - not valid as this was already their job
Ocean Shipping v Hyundi
Sufficiency
- Pre-existing contractual relationship
affirmed Silk v Myrick
Hartley v Ponsonby
Sufficiency
- Pre-existing contractual relationship
exception:17 of 37 sea crew deserted -it was held while
under Stilk the sailors weren’t entitled to additional pay – here the loss of numbers made the journey perilous than the one they agreed, therefore promise for extra pay was enforceable as the crew members provided fresh consideration by for a new set of more
dangerous duties.
Kenny v An Post
Sufficiency
- Pre-existing contractual relationship
extra 15 minute break - not valid - they were already contracted to work those hours - nothing about the service had changed
William v Roffrey Brothers
Sufficiency
- Pre-existing contractual relationship
- relaxing of this rule
Provided a party derives an added benefit from the other
party agreeing to carry out those obligations – the added benefit here being not havingto get another contract, avoiding a penalty clause that was due– this can be considered
fresh consideration
Pinnells case
Sufficiency
- Part payment of existing debt
A creditor’s promise to accept part-payment in full satisfaction of debt is not enforceable
because it is not supported by fresh consideration
Foakes v Beer
Sufficiency
- Part payment of existing debt
Affirms Pinnels case
The Barge Inn v Quinn
Sufficiency
- Part payment of existing debt
Laffoy J ‘it is beyond question that the rule in Pinnells case still
represents the law in Ireland.’
Re Selectmove
Sufficiency
- Part payment of existing debt
William v Roffrey brothers does not apply to this
Drogheda v Fairtlough
Sufficiency
- Part payment of existing debt
EXCEPTIONS - introduction of a new element
it was held payment of a less sum is insufficient – however
payment of a lesser sum combined with a collateral advantage attending the transaction
may be sufficient.
MWB Business v Rock Advertising
Sufficiency
- Part payment of existing debt
EXCEPTIONS - introduction of a new element
tenant in office fell into rent arrears – landlord and
tenant agreed to reschedule payments and clear debt at later stage – court held this was
good consideration as landlord received some payment immediately and avoided the
disbenefit of the building being empty and causing further losses.
Rosscorla v Thomas
Past consideration is no consideration
Re McCardle
Past consideration
children entitled to home under will – wife of one child did improvements to
house – after done, children said would be reimbursed – this was unenforceable as the work
has already been completed therefore past consideration was unenforceable.
Lampleigh v Brathwait:
Exceptions to past-consideration
D killed man and asked P to obtain royal pardon for him – went to extensive efforts and D
promised payment – promise was enforceable as it was not ‘mere voluntary courtesy’
It was an undertaking taken at the request of D on the understanding there would be
payment – therefore it was enforceable
If not someone could hire plumber and then not pay for it – he does his work with the
understanding he will be paid
Pao On v Lau You Long
Exceptions to past-consideration
D asked p not to sell shares for a year which p agreed – d then subsequently promised he
would indemnify P if the price of shares fell
This occurred – he refused
Lord Scarman set down conditions which all must be satisfied (which were in this case) for
consideration which seems on the face to be ‘past’ could be enforceable:
1 – Act must be done at request of promisor
2 – parties must have anticipated the act was to be renumerated or by conferral of
some other benefit
3- payment/ conferring of benefit would have been legally enforceable had it been
promised in advance
