Consideration

Question 1

definition of consideration

Answer 1

something of economic value being exchanged between parties

Question 2

rules of consideration (4)

Answer 2

1. must be sufficient but need not be adequate
2. must not be given in the past
3. performance of an existing legal or contractual duty is not good consideration
4. must move from the promisee

Question 3

Chappel V Nestle co and
Thomas V Thomas

Answer 3

must be sufficient but need not be adequate

Question 4

Jones V Padvatton

Answer 4

giving up something of value eg a well paid job is valid consideration, includes giving up right to sue

Question 5

White V Bluett

Answer 5

must have economic value or cant be consideration

Question 6

Re Mcardle

Answer 6

consideration must be provided at the time or after an agreement

Question 7

exception to Re Mcardle

Answer 7

implied promises

Question 8

what is an implied promise

Answer 8

where someone implies payment will be made before the other party acts but doesn’t formally agree to it until after acting

Question 9

1st way to prove an implied promise and case

Answer 9

past consideration is good consideration when it has been provided at the promisors request, creates and implied promise
Lampleigh V Braithwait

Question 10

2nd way to prove an implied promise and case

Answer 10

past consideration is good consideration when provided in an employer, employee setting, will create an implied promise

Question 11

rule for duties

Answer 11

if a party already has a duty to do something, promising to do that thing doesn’t have any value

Question 12

existing legal/ public duty

Answer 12

a persons only doing something they have to do under the law, not good consideration

Question 13

exception to an existing legal/ public duty and case

Answer 13

going beyond the duty
Glassbrook V Glamorgan CC

Question 14

existing contractual duty and case

Answer 14

performing an existing contractual duty is not good consideration
Stilk V Myrick

Question 15

exception 1 to an existing contractual duty and case

Answer 15

going beyond the duty
Hartley V Ponsonby

Question 16

exception 2 to an existing contractual duty and case

Answer 16

practical benefits, if performing an existing contractual duty provides benefits, is good consideration
Williams V Roffery Bros

Question 17

exception 3 to an existing contractual duty and case

Answer 17

third party contracts, fulfilling an existing contractual duty owed to a third party can amount to valid consideration for a new contract
Scotson V Pegg

Question 18

Tweedle V Atkison

Answer 18

consideration must move from the promisee