Consideration

Question 1

What is consideration in contract law?

Answer 1

The ‘thing’ each party puts into the contract, which must be of value and real.

Question 2

Consideration case

Answer 2

Chappell v nestle

Question 3

performance of an existing contractual duty considered good consideration?

Answer 3

No, it is not good consideration.

Stilk v Myrick

Question 4

What is an exception to the rule that performance of an existing duty is not good consideration?

Answer 4

something extra beyond duty-Hartley v Ponsonby.

Question 5

Second exception for performance of an existing duty

Answer 5

When a party gains an extra benefit

Williams v Roffey

Question 6

Is past consideration valid

Answer 6

not good consideration.

in Re McArdle.

Question 7

What is an exception to the rule against past consideration?

Answer 7

An implied promise to pay for a task before the consideration is done.

Lampleigh v Braithwaite

Question 8

Is part payment of a debt considered good consideration?

Answer 8

No, part payment of a debt is not good consideration.
PINNEL’S Case.

Question 9

What are exceptions to the rule against part payment of a debt?

Answer 9

• something other than money
• Paying a smaller amount earlier
• Repaying part of the debt at a different place on the due date

Question 10

What is promissory estoppel?

Answer 10

An equitable remedy that prevents a promisor from breaking a promise that another person relies on to their detriment.

Question 11

privity of contract?

Answer 11

Only those who give consideration have rights under the contract.
Established in Tweddle v Atkinson.

Question 12

What is an exception to the principle of privity of contract?

Answer 12

Contracts (Rights of Third Parties) Act 1999 allows a person not party to a contract to enforce it if named or gaining a benefit from it.