Consideration

Question 1

Define consideration

Answer 1

Some right, interest, profit or benefit accruing to one party or some loss suffered or undertaken by another - Currie v Misa

Question 2

Consideration must be …..

Answer 2

• Certain, tangible and must move from the promisee to the promisor

Question 3

Case for certainty

Answer 3

Chappell and co v Nestle ltd

Chocolate wrappers can be used as consideration

Question 4

Case for tangible 1

Answer 4

White v Bluett - promise to forget debt (not to do something) is not good consideration as it is not tangible

Question 5

Case for tangible 2

Answer 5

Ward v Bytham - Promise to keep a child well looked after and happy (promise to do something) can be good consideration

Question 6

Consideration must be present not past

Answer 6

• Re McArdle

Work was finished when promise was made, consideration must be present

Question 7

Lampleigh v Braithwaite

Answer 7

If a party promises payment for what has just been done at his request, courts can enforce that promise

Question 8

Consideration must move from promisee

Answer 8

Tweddle v Atkinson - the groom was not party to the agreement, not involved therefore not entitled to enforce the contract

Question 9

Executory consideration

Answer 9

Formed by an exchange of promises by parties - mostly found in bilateral contracts

Question 10

Executed consideration

Answer 10

Found in unilateral contracts

Where one party makes a promise in exchange for an act by the other party, when the act is complete, consideration is executed

Question 11

Consideration must not be an existing duty

Answer 11

Silk v Myriek - the C was under an existing duty to work the ship back to London

Question 12

Consideration must not be a public duty - Collins v Godfrey

Answer 12

The promise to pay was not legally enforceable as it was already his duty to attend