Consideration

Question 1

What is consideration in contract law?

Answer 1

Consideration is something of value that is exchanged between parties in a contract.

Question 2

True or False: Consideration must be adequate but not necessarily equal.

Answer 2

True

Question 3

What are the two main types of consideration?

Answer 3

Executed consideration and executory consideration.

Question 4

Fill in the blank: Consideration must move from the _______.

Answer 4

promisee

Question 5

What is executory consideration?

Answer 5

Consideration that is to be provided in the future.

Question 6

What is executed consideration?

Answer 6

Consideration that has already been provided.

Question 7

True or False: Past consideration is valid consideration.

Answer 7

False

Question 8

What case established that past consideration is not valid?

Answer 8

Re McArdle

Question 9

What is the legal principle established in the case of Currie v Misa?

Answer 9

Consideration must be sufficient but need not be adequate.

Question 10

Which case illustrates that consideration can be a promise to do something?

Answer 10

Carlill v Carbolic Smoke Ball Co.

Question 11

Fill in the blank: Consideration must be _______ and _______.

Answer 11

sufficient, legal

Question 12

True or False: A gift is a form of consideration.

Answer 12

False

Question 13

What does ‘sufficient consideration’ mean?

Answer 13

It refers to consideration that has some value in the eyes of the law.

Question 14

Fill in the blank: Consideration must be _______ to the contract.

Answer 14

relevant

Question 15

What does the term ‘forbearance’ mean in the context of consideration?

Answer 15

It refers to refraining from exercising a legal right.

Question 16

True or False: Consideration can consist of a promise not to sue.

Answer 16

True

Question 17

What does the case of Thomas v Thomas illustrate about consideration?

Answer 17

It shows that consideration can be nominal and still valid.

Question 18

What is the concept of ‘executory promise’?

Answer 18

A promise that is to be fulfilled in the future.

Question 19

Fill in the blank: In a contract, consideration can be in the form of _______ or _______.

Answer 19

money, services

Question 20

What is meant by ‘legal detriment’ in consideration?

Answer 20

It refers to a loss or disadvantage incurred by a party in a contract.

Question 21

What does the case of Collins v Godefroy establish?

Answer 21

A public duty cannot be valid consideration.

Question 22

True or False: Consideration can be a promise to perform an existing legal duty.

Answer 22

False

Question 23

What is the significance of the case of Stilk v Myrick?

Answer 23

It established that performing an existing duty is not good consideration.

Question 24

Fill in the blank: The principle of _______ prevents a party from going back on a promise made without consideration.

Answer 24

promissory estoppel

Question 25

What is the difference between 'executory' and 'executed' consideration?

Answer 25

Executed consideration has been completed, while executory consideration is yet to be performed.

Question 26

What is meant by 'consideration in a contract'?

Answer 26

It refers to what each party stands to gain or lose from the contract.

Question 27

True or False: Consideration can be indirect.

Answer 27

True

Question 28

What is the significance of the case of Chappell & Co Ltd v Nestle Co Ltd?

Answer 28

It confirmed that consideration does not need to be adequate, just sufficient.

Question 29

Fill in the blank: In contract law, the term 'reciprocal promises' indicates _______.

Answer 29

promises made by both parties

Question 30

What is a 'conditional promise' in the context of consideration?

Answer 30

A promise that is contingent upon the occurrence of a specific event.

Question 31

What role does 'intention to create legal relations' play in consideration?

Answer 31

It ensures that parties intend for their agreement to be legally binding.

Question 32

True or False: Consideration must be in the form of a tangible object.

Answer 32

False

Question 33

What is the importance of the case of Williams v Roffey Bros & Nicholls (Contractors) Ltd?

Answer 33

It established that practical benefits can constitute valid consideration.

Question 34

Fill in the blank: The term 'promisee' refers to the party who _______.

Answer 34

receives the promise

Question 35

What is 'mutuality of consideration'?

Answer 35

The requirement that both parties provide consideration in a contract.

Question 36

What does the phrase 'part payment of a debt' imply in terms of consideration?

Answer 36

Part payment is not sufficient consideration to discharge the whole debt.

Question 37

Which case illustrates the rule regarding part payment of a debt?

Answer 37

Foakes v Beer

Question 38

True or False: A promise made under seal does not require consideration.

Answer 38

True

Question 39

What does 'sufficient consideration' imply about the value of consideration?

Answer 39

It means consideration must have some value in the eyes of the law, but need not be equal.

Question 40

True or False: Consideration can be a mere token amount.

Answer 40

True

Question 41

What is the concept of 'executory consideration' in relation to future performance?

Answer 41

It refers to a promise to perform in the future as part of the contract.

Question 42

What does the term 'consideration must be legal' mean?

Answer 42

It means that the consideration must not involve illegal activities.

Question 43

Fill in the blank: A promise to do something illegal is _______ consideration.

Answer 43

not valid

Question 44

What does the term 'detriment' refer to in the context of consideration?

Answer 44

A loss or disadvantage suffered by a party as a result of the contract.

Question 45

True or False: An agreement without consideration is enforceable.

Answer 45

False

Question 46

What is the significance of the case of Pao On v Lau Yiu Long?

Answer 46

It established that past consideration can be valid if it was requested by the promisor.

Question 47

Fill in the blank: The concept of _______ is crucial when discussing the enforceability of promises.

Answer 47

consideration

Question 48

What case demonstrates that consideration can be based on a benefit conferred?

Answer 48

Mills v Wyman

Question 49

True or False: Consideration must be present for a contract to be valid.

Answer 49

True

Question 50

What does 'forbearance to sue' mean in terms of consideration?

Answer 50

It refers to the act of refraining from filing a lawsuit as a form of consideration.

Question 51

Fill in the blank: The concept of _______ can be seen in the context of a promise that leads to a detriment.

Answer 51

consideration

Question 52

What is 'insufficient consideration'?

Answer 52

Consideration that does not meet the legal requirements to support a contract.

Question 53

True or False: A promise made without consideration can create an enforceable contract.

Answer 53

False

Question 54

What is the role of 'intention' in relation to consideration?

Answer 54

Intention ensures that parties intend to create a legal obligation with their consideration.

Question 55

What is the significance of the case of Baird Textiles Ltd v Marks & Spencer plc?

Answer 55

It confirmed that ongoing negotiations do not constitute consideration.

Question 56

True or False: Consideration must be tangible.

Answer 56

False

Question 57

What is the effect of the case of Re Selectmove Ltd on consideration?

Answer 57

It reinforced that part payment of a debt is not sufficient consideration.

Question 58

Fill in the blank: The doctrine of _______ protects parties from being held to a promise made without consideration.

Answer 58

promissory estoppel

Question 59

What is 'legitimate expectation' in the context of consideration?

Answer 59

The belief that a promise will be fulfilled based on prior dealings or representations.

Question 60

True or False: A contract can be enforceable if only one party provides consideration.

Answer 60

False

Question 61

What is the role of 'consideration in the form of a gift'?

Answer 61

A gift does not constitute valid consideration for a contract.

Question 62

What is the significance of the case of Hamer v Sidway?

Answer 62

It demonstrated that forbearance can be valid consideration.

Question 63

Fill in the blank: The principle of _______ states that consideration must not be illegal or impossible.

Answer 63

legality