Consideration

Question 1

consideration can be described as

Answer 1

as the price paid by the promisee (to the promisor) towards executing a contract

Question 2

what is a agreement unsupported by consideration called

Answer 2

a naked agreement (nudum pactum)

Question 3

how do the courts feels without consideration

Answer 3

courts are hesitant to enforce free agreements unless there are exceptional reasons.

Question 4

Consideration is the price that .

Answer 4

makes a contract enforceable

Question 5

a party who seeks to enforce a contract must

Answer 5

furnish consideration towards the agreement

Question 6

why must the party seeking contact provide consideration

Answer 6

ensures that a party seeking to enforce a bargain must have given something in return or paid a price to compel the contract’s performance.

Question 7

Where the contract is executory….

Answer 7

consideration would usually take the form of a promise to perform at a time in the future

Question 8

Executory contracts are

Answer 8

formation is made at one date, but performance is to be made at a future date

Question 9

in terms of VALUE consideration

Answer 9

need not be adequate but sufficient

Question 10

In what situations might the law assess the value of consideration?

Answer 10

When determining the fairness of a bargain in relevant situations, such as when providing legal relief.

Question 11

Why can’t a pre-existing duty count as good consideration for extra payment?

Answer 11

Because the person was already supposed to do it, so it doesn’t provide new value for the extra money promised.

Question 12

What happens when the promisee has a duty to a third party?

Answer 12

If the promisor promises to pay the promisee for performing that duty, the promisee can receive payment even if they are already obligated to the third party.

Question 13

What are the two types of obligations in contractual variations?

Answer 13

1) Obligations related to past debts
2) Obligations related to ongoing or future duties.

Question 14

How does the law treat ongoing or future obligations compared to past debts?

Answer 14

The law is generally more flexible with ongoing or future obligations to protect creditors from unfair changes to financial contracts.

Question 15

What must valid consideration be related to in a bargain or agreement?

Answer 15

Valid consideration must be directly related to a current or future agreement and cannot come from something that happened in the past.

Question 16

When is consideration not considered past? and example

Answer 16

Consideration is not past if the promisor requested the service or favor, even if the payment agreement was made afterward. For example, emergency legal services provided to someone imply payment is expected, so promising to pay after the service does not make it past consideration.

Question 17

When is consideration not considered past despite timing? warrant

Answer 17

Consideration is not deemed past just because there’s a delay between a promise (made afterward) and a completed bargain. For example, a warranty about the quality of services or goods given after a sale does not make it past consideration, as it is connected to the original transaction

Question 18

If a promisee wants to change a contract that has become more difficult for them to perform

Answer 18

they usually need to show fresh or additional consideration for the change to be enforceable. Simply doing a duty they already owed to the promisor is not enough.

Question 19

Promissory estoppel

Answer 19

equitable principle that allows parties to modify a contract without fresh consideration if one party’s promise leads another to reasonably rely on it, preventing the first party from enforcing strict contract rights.

Question 20

what is an example of Promissory estoppel

Answer 20

a contractor cannot ask for additional payment if they told the homeowner they would not change extra for the work and the homeowner relied on it and didn’t budget extra money

Question 21

Two main requirements are expected to be demonstrated by the party seeking to establish contract variation through promissory estoppel. They are—

Answer 21

1. A clear promise from the promisor to give up a contractual right,
2. the other party relies on that promise.

Question 22

what is an exception to promissory estoppel

Answer 22

The promisor retains the right to demand payment for future performance, especially if the conditions for the concession no longer apply. They can end the concession by notifying the promisee that they will revert to the original agreement.

Question 23

what is an example of the exception to promissory estoppel

Answer 23

if a contractor was doing work on a house for 20,000 and then realised he needed more time and resources and promised not to charge more but then finished it in the expected time initially, he can ask for that 20,000

Question 24

Pinnel’s Case Rule

Answer 24

if a creditor agrees to accept a smaller payment instead of the full debt, they can still demand the rest of the money later. The creditor can always change their mind and ask for the full amount.

Question 25

what is the rule of Accord and Satisfaction

Answer 25

For a debtor to hold a creditor to a promise of accepting a lesser payment, they must show that there was a genuine agreement (called “accord and satisfaction”) between both parties without any tricks or pressure involved.

Question 26

Accord and Satisfaction
Agreement Needed

Answer 26

There must be clear evidence of an agreement between the parties to establish accord and satisfaction

Question 27

Accord and Satisfaction
Part-Payment with Benefits:

Answer 27

If a debtor pays only part of the debt, it must be linked to other benefits, such as paying early or providing something different

Question 28

Accord and Satisfaction Disputed Debt Amoun

Answer 28

if a debtor genuinely disputes how much they owe, any payment made in good faith can be considered valid.

Question 29

Accord and Satisfaction
Unliquidated Debt:

Answer 29

If the debt is not clearly defined (unliquidated), any amount the creditor accepts can also be valid for settling the obligation

Question 30

Accord and Satisfaction
Composition Payments:

Answer 30

If creditors and a debtor agree to accept part of a payment to settle a debt, this agreement is binding on all creditors. Likewise, an agreement among debtors and a creditor is also binding on those involved

Question 31

Accord and Satisfaction
Third-Party Payments:

Answer 31

A part payment made by someone else on behalf of the debtor is enough to fulfill the requirement for accord and satisfaction, even without additional benefits or delays.