consideration

Question 1

a contract needs

Answer 1

OFFER
ACCEPTANCE
CONSIDERATION
INTENTION TO CREATE LEGAL RELATIONS

Question 2

basic theory of contract

Answer 2

Freedom to contract (you can contract what you like, with who you like)
Sanctity of contract (the law does not want to interfere or invalidate contracts unless it has to.)

Question 3

What is consideration

Answer 3

An exchange of something of value
Both parties must give something to the other by the way of exchange

Question 4

Executed and executory consideration

Answer 4

Executed- an act in return for a promise
Executory- a promise in return for a promise

Question 5

4 rules

Answer 5

1.consideration must be sufficient but not adequate (Thomas v Thomas)
2.past consideration is no consideration (McAcdle)
3.the consideration must move to the promise (Tweddle v Atkinson)
4.performing a pre existing duty cannot be consideration for a new contract

Question 6

Adequacy

Answer 6

The law does not concern itself with whether the consideration is equivalent only that something of value is supplied (Thomas v Thomas)

Question 7

Performing a pre existing duty cannot be consideration for a new contract. This can occur when:

Answer 7

-A duty is imposed by a public duty to act (Colin’s v Godefry)
-a duty under a existing contract (Williams v Roffey)
-a promise to pay an existing debt