Consideration Flashcards
What is the definition of consideration according to Currie v Misa (1875)?
Consideration may consist of a right, interest, profit, or benefit to one party, or a forbearance, detriment, loss, or responsibility given by the other
Can a promise be consideration in contract law?
Yes, a promise (executory consideration) can be consideration, especially in bilateral contracts
What is the distinction between executory and executed consideration?
Executory consideration is a promise to do something, while executed consideration is an act, typically seen in unilateral contracts
Does consideration need to be adequate to be valid in contract law?
No, consideration need not be adequate but must be sufficient; it must have some value in the eyes of the law (Chappell v Nestlé)
What is past consideration in contract law?
Past consideration is not valid; something done before the promise cannot be consideration (Roscorla v Thomas)
What are the three exceptions to past consideration?
The act must be done at the promisor’s request, both parties must understand it is to be rewarded, and the benefit must have been legally enforceable if promised in advance
Can performing an existing legal duty be valid consideration for a new promise?
Generally, performing an existing legal duty is not valid consideration, unless something extra is offered beyond the duty (Collins v Godefroy, Glasbrook Bros)
Can an existing duty owed to a third party be consideration?
Yes, performing an act one is contractually bound to a third party for can be sufficient consideration for a new contract (Scotson v Pegg)
Is an existing contractual duty owed to another party valid consideration?
Generally no, unless the party goes above and beyond their duty, as in Hartley v Ponsonby
Can the promise to pay more be good consideration?
Generally no, unless it can be established that the promisee obtains a practical benefit and there is no duress (Williams v Roffey Bros)
Is part payment of a debt valid consideration for the creditor to forgo the balance?
No, part payment is not valid consideration (Pinnel’s Case), but exceptions exist such as payment in a different form or by a third party
What is promissory estoppel?
It prevents a creditor from enforcing their legal rights if it would be unfair to do so, based on a promise not to enforce those rights (Central London Property Trust v High Trees House)
What are the five elements of promissory estoppel?
A clear promise, reliance by the promisee, no detrimental reliance, inequity in going back on the promise, and estoppel used only as a defense (Combe v Combe)
