Consideration Flashcards
definition of consideration
something of economic value being exchanged between parties
rules of consideration (4)
- must be sufficient but need not be adequate
- must not be given in the past
- performance of an existing legal or contractual duty is not good consideration
- must move from the promisee
Chappel V Nestle co and
Thomas V Thomas
must be sufficient but need not be adequate
Jones V Padvatton
giving up something of value eg a well paid job is valid consideration, includes giving up right to sue
White V Bluett
must have economic value or cant be consideration
Re Mcardle
consideration must be provided at the time or after an agreement
exception to Re Mcardle
implied promises
what is an implied promise
where someone implies payment will be made before the other party acts but doesn’t formally agree to it until after acting
1st way to prove an implied promise and case
past consideration is good consideration when it has been provided at the promisors request, creates and implied promise
Lampleigh V Braithwait
2nd way to prove an implied promise and case
past consideration is good consideration when provided in an employer, employee setting, will create an implied promise
Re Casey’s patents
rule for duties
if a party already has a duty to do something, promising to do that thing doesn’t have any value
existing legal/ public duty
a persons only doing something they have to do under the law, not good consideration
exception to an existing legal/ public duty and case
going beyond the duty
Glassbrook V Glamorgan CC
existing contractual duty and case
performing an existing contractual duty is not good consideration
Stilk V Myrick
exception 1 to an existing contractual duty and case
going beyond the duty
Hartley V Ponsonby
