Consideration

Question 0

Foakes v Beer

Answer 0

Facts: Beer agreed to let Foakes off the interest of a debt
Decision: He owed the interest
Significance: The promise to pay a debt on time is not “good consideration”

Question 1

RE Selectmove

Answer 1

Facts: The inland revenue promised to let RE Selectmove off a debt
Decision: They had to pay as there was no “practical benefit” or “good consideration”
Consider: The seriousness of the promise made

Question 2

Williams v Roffey

Answer 2

Facts: Roffey offered to pay more for on time completion 
Decision: Test for variation;
1) If A has a contract with B
2) Before complete, A thinks B can't 
3) A promises to pay more
4) A obtains a practical benefit
5) There is no economic duress

Question 3

Stilk v Myrik

Answer 3

Facts: Two men deserted a voyage
Decision: Didn’t have to pay more as no good consideration
Consider: The historical context and fear of mutiny

Question 4

Pinnel’s Case

Answer 4

“Payment of a lesser sum on the day of satisfaction cannot be any satisfaction of the whole debt”

Question 5

HP v Temple

Answer 5

If the third party pays the reduced sum there is good consideration

Question 6

Contract Act 1999

Answer 6

Good consideration can move from a third party

Question 7

Eastwood v Kenyon

Answer 7

Past consideration cannot amount to good consideration

Question 8

Pao On v Lau Yiu Lang

Answer 8

1) The act must have been done at the promiser’s request
2) The parties must have understood that the act was to be renumerated
3) Payment must have been legally enforceable had it been made in advance

Question 9

Collins v Godfrey

Answer 9

Already obliged to be a court witness

Question 10

Hartley v Ponsoby

Answer 10

Sailors went beyond obligations

Question 11

Glasbrook v Glamorgan CC

Answer 11

Promise is enforceable as police went beyond their obligations

Question 12

Chappell & Co v Nestle

Answer 12

Consideration must be sufficient but need not be adequate