CONSIDERATION Flashcards
What are the two types of consideration? (2)
-executed consideration - an act in return for a promise.
-executory consideration - a promise for a promise.
what cases define consideration? (2)
- Currie v Misa (1875)
-Dunlop v Selfridge ltd (1915)
how did Currie v Misa (1875) define consideration? (1)
some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.
how did Dunlop v Selfridge (1915) define consideration? (1)
an act or forbearance of one party or the promise thereof, is the price for which the prom be of the others is bought, and the promise thus given for value is enforceable.
what is the difference between executed and executory consideration? (1)
when consideration has been performed it is said to be executed, if it is yet to be performed it is said to be executory.
what are the 5 rules of consideration? (5)
- consideration need not be adequate but must be sufficient
- past consideration is not good consideration
- consideration must move from the promisee
- performing and existing duty cannot be the consideration for a future contract
- a promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration
what is meant by adequacy? (1)
the idea of adequacy is that the parties to the contract themselves agree that the value of the things being exchanged is acceptable.
what cases cover adequacy? (2)
-Thomas v Thomas (1842)
- Chappell v Nestle co ltd (1960)
what is meant by sufficient? (1)
means the consideration must be real and have some value, real consideration must exist and must be definite and have at least nominal amount of value.
what cases cover sufficiency? (3)
-Chappell v Nestle co ltd (1960)
-White v Bluett (1953)
-Ward v Byham (1956)
what is meant by past consideration is not good consideration? (1)
means that consideration has no value where it has already been done at the time the agreement is made. it is not the price for which the promise is bought as it had been completed before the agreement was made.
what cases cover past consideration is not good consideration? (4)
-Re McArdle (1951)
-Re Caseys patent (1892)
-Lampleigh v Braitwait (1615)
-Roscoria v Thomas
what is the exception to past consideration is not good consideration? (1)
when there is the promisers expressed or implied request for a particular task and there must be an implied understanding that the task should be paid for.
what rules cover the exception to past consideration is not good consideration? (3)
- an express of implied request by the promiser to the promisee to perform
- an implied promise inherent in the request that the promiser will pay the promisee a reasonable sum for performing the task.
- the performance of the task and the payment of thee money by the promiser to the promisee for that performance.
why might judges implement consideration? (1)
a promise to be contractually bound is not usually enforceable unless enforceable by consideration and yet judges may implement consideration to comply with the formal requirements (to comply with sanctity of contract)
what approach do courts take to contract law? (1)
the courts take a Laissez Faire approach except in circumstances where there is unequal bargaining power and one side has taken advantage.
what is the 1st rule of consideration? (1)
‘consideration need not be adequate but it must be sufficient’
what is meant by past consideration? (1)
must be a mutual exchange of promises, if one party carries out an act voluntarily and a second party later promises to pay or contribute to this act, this is called past consideration.
what cases cover past consideration? (1)
Roscoria v Thomas
what case shows the harshness of the past consideration rule? (1)
McArdle (1951)