Consideration Flashcards
What is consideration in contract law?
Consideration is something of value that is exchanged between parties in a contract.
True or False: Consideration must be adequate but not necessarily equal.
True
What are the two main types of consideration?
Executed consideration and executory consideration.
Fill in the blank: Consideration must move from the _______.
promisee
What is executory consideration?
Consideration that is to be provided in the future.
What is executed consideration?
Consideration that has already been provided.
True or False: Past consideration is valid consideration.
False
What case established that past consideration is not valid?
Re McArdle
What is the legal principle established in the case of Currie v Misa?
Consideration must be sufficient but need not be adequate.
Which case illustrates that consideration can be a promise to do something?
Carlill v Carbolic Smoke Ball Co.
Fill in the blank: Consideration must be _______ and _______.
sufficient, legal
True or False: A gift is a form of consideration.
False
What does ‘sufficient consideration’ mean?
It refers to consideration that has some value in the eyes of the law.
Fill in the blank: Consideration must be _______ to the contract.
relevant
What does the term ‘forbearance’ mean in the context of consideration?
It refers to refraining from exercising a legal right.
True or False: Consideration can consist of a promise not to sue.
True
What does the case of Thomas v Thomas illustrate about consideration?
It shows that consideration can be nominal and still valid.
What is the concept of ‘executory promise’?
A promise that is to be fulfilled in the future.
Fill in the blank: In a contract, consideration can be in the form of _______ or _______.
money, services
What is meant by ‘legal detriment’ in consideration?
It refers to a loss or disadvantage incurred by a party in a contract.
What does the case of Collins v Godefroy establish?
A public duty cannot be valid consideration.
True or False: Consideration can be a promise to perform an existing legal duty.
False
What is the significance of the case of Stilk v Myrick?
It established that performing an existing duty is not good consideration.
Fill in the blank: The principle of _______ prevents a party from going back on a promise made without consideration.
promissory estoppel
What is the difference between ‘executory’ and ‘executed’ consideration?
Executed consideration has been completed, while executory consideration is yet to be performed.
What is meant by ‘consideration in a contract’?
It refers to what each party stands to gain or lose from the contract.
True or False: Consideration can be indirect.
True
What is the significance of the case of Chappell & Co Ltd v Nestle Co Ltd?
It confirmed that consideration does not need to be adequate, just sufficient.
Fill in the blank: In contract law, the term ‘reciprocal promises’ indicates _______.
promises made by both parties
What is a ‘conditional promise’ in the context of consideration?
A promise that is contingent upon the occurrence of a specific event.
What role does ‘intention to create legal relations’ play in consideration?
It ensures that parties intend for their agreement to be legally binding.
True or False: Consideration must be in the form of a tangible object.
False
What is the importance of the case of Williams v Roffey Bros & Nicholls (Contractors) Ltd?
It established that practical benefits can constitute valid consideration.
Fill in the blank: The term ‘promisee’ refers to the party who _______.
receives the promise
What is ‘mutuality of consideration’?
The requirement that both parties provide consideration in a contract.
What does the phrase ‘part payment of a debt’ imply in terms of consideration?
Part payment is not sufficient consideration to discharge the whole debt.
Which case illustrates the rule regarding part payment of a debt?
Foakes v Beer
True or False: A promise made under seal does not require consideration.
True
What does ‘sufficient consideration’ imply about the value of consideration?
It means consideration must have some value in the eyes of the law, but need not be equal.
True or False: Consideration can be a mere token amount.
True
What is the concept of ‘executory consideration’ in relation to future performance?
It refers to a promise to perform in the future as part of the contract.
What does the term ‘consideration must be legal’ mean?
It means that the consideration must not involve illegal activities.
Fill in the blank: A promise to do something illegal is _______ consideration.
not valid
What does the term ‘detriment’ refer to in the context of consideration?
A loss or disadvantage suffered by a party as a result of the contract.
True or False: An agreement without consideration is enforceable.
False
What is the significance of the case of Pao On v Lau Yiu Long?
It established that past consideration can be valid if it was requested by the promisor.
Fill in the blank: The concept of _______ is crucial when discussing the enforceability of promises.
consideration
What case demonstrates that consideration can be based on a benefit conferred?
Mills v Wyman
True or False: Consideration must be present for a contract to be valid.
True
What does ‘forbearance to sue’ mean in terms of consideration?
It refers to the act of refraining from filing a lawsuit as a form of consideration.
Fill in the blank: The concept of _______ can be seen in the context of a promise that leads to a detriment.
consideration
What is ‘insufficient consideration’?
Consideration that does not meet the legal requirements to support a contract.
True or False: A promise made without consideration can create an enforceable contract.
False
What is the role of ‘intention’ in relation to consideration?
Intention ensures that parties intend to create a legal obligation with their consideration.
What is the significance of the case of Baird Textiles Ltd v Marks & Spencer plc?
It confirmed that ongoing negotiations do not constitute consideration.
True or False: Consideration must be tangible.
False
What is the effect of the case of Re Selectmove Ltd on consideration?
It reinforced that part payment of a debt is not sufficient consideration.
Fill in the blank: The doctrine of _______ protects parties from being held to a promise made without consideration.
promissory estoppel
What is ‘legitimate expectation’ in the context of consideration?
The belief that a promise will be fulfilled based on prior dealings or representations.
True or False: A contract can be enforceable if only one party provides consideration.
False
What is the role of ‘consideration in the form of a gift’?
A gift does not constitute valid consideration for a contract.
What is the significance of the case of Hamer v Sidway?
It demonstrated that forbearance can be valid consideration.
Fill in the blank: The principle of _______ states that consideration must not be illegal or impossible.
legality
