Consideration

Question 1

What is consideration

Answer 1

Both parties to a contract must offer something by way of exchange for a contract to be formed.

Question 2

There must be a _____ not a ___

Answer 2

• bargain
• gift

Question 3

What is issue 1?

Answer 3

• consideration need not be adequate but must be sufficient

Question 4

____ arent concerned whether there has been a ___ ___ ____ _____, just that there has been ___ and its ___ __ _____ (case?)

Answer 4

courts
good or bad bargain
one
not a gift
Thomas v Thomas

Question 5

Consideration must be __ and have ___ ___ (White v ___)

Answer 5

real
some value
White v Bluett

Question 6

main facts of White v Bluett

Answer 6

father promised to write off son’s debt if he stopped complaining - argument failed because there was no consideration as he had no legal right to complain, the promise was too intangible

(complaining isnt a legal right, he didnt actually give up anything)

Question 7

main facts Chappell v Nestle

Answer 7

the choco wrappers amounted to consideration even though they were of very little value because the company had requested them

Question 8

However, what is ___ and of value is not always ___ ____ (case?)

Answer 8

real
easily distinguishable
Ward v Byham

Question 9

Main facts Ward v Byham

Answer 9

father of a child promised mother money towards its upkeep if she kept the child well looked after - going above legal obligation as a mother = good value

Question 10

___ ___ ___ may also be sufficient consideration, if they have a ___ ___ to it. (_____ v Bischoffsheim)

Answer 10

Giving something up
legal right
Callisher v Bischoffsheim

Question 11

Callisher v Bischoffsheim main facts

Answer 11

Classed as consideration as C gave away legal right to sue, D gained by not being sued

Question 12

What is issue 2?

Answer 12

Past consideration is no consideration

Question 13

Key case for past consideration is no consideration

Answer 13

Re McArdle

Question 14

past consideration is no consideration (____), Therefore, ___ ____ is only ___ after work has been done , then this is __ ___ _____ and the payment cannot be _____

Answer 14

Re McArdle
if payment
promised
not good consideration
enforced

Question 15

Past consideration EXCEPTION is often in the case of…? (case?)

Answer 15

commercial agreements
Re Casey’s Patent

Question 16

Re Casey’s patent main facts

Answer 16

C worked on patents for a company. it was implied that when he worked on them he would receive some payment given the commercial nature of the agreement

Question 17

(EXCEPTION) This is also the case if the ___ ___ were ____ by the party who later ____ ____ (____ v ___wait)

Answer 17

actions taken
requested
promises payment
Lampeigh v Braithwait

Question 18

Lampeigh v Braithwait main facts

Answer 18

C had only done the action to obtain royal pardon because he was specifically requested to, therefore D should have withheld the implied promise

Question 19

However,the exception is if there’s an ____ ____ that there will be a _____

Answer 19

implied promise
payment

Question 20

However, these exceptions will only mean there is a good consideration if… (case?)

Answer 20

it would’ve been enforceable had the promise been made in advance, therefore all the rules of consideration apply (Pan v Lau)

(basically, promise must still meet all basic requirements for the exceptions to make it a good consideration)

Question 21

what is issue 3?

Answer 21

performing a pre-existing duty is not consideration for a new contract

Question 22

Performing a _______ ___ is not consideration for a new contract. Therefore, where a party is already ___, or _____ obliged to do something , this ___ ___ amount to ____ consideration for a new contract (case? x2)

Answer 22

pre-existing duty
legally
contractually
can never
sufficient
Stilk v Myrick, Collins v Godefroy

Question 23

Main facts of Stilk v Myrick
What type of duty is this?

Answer 23

where the claim for additional wages (£5) failed when captain asked remaining crew to do extra work after 2 had deserted because it was part of their duty

Contractual duty

Question 24

Main facts of Collins v Godefroy
What type of duty is this?

Answer 24

Policeman was under a court order to attend and give evidence at trial, D promised to pay him money if he did. –> not enforceable
Public Duty

Question 25

Consideration can be found however, where a ___ has given more than ___ ___ expected __ ___ ___ (case), or _____ a ____ duty (case)

Answer 25

party
to be
of their duty
(Hartley v Ponsonby)
exceeded
public (Glasbrook Bors v Glamorgan)

Question 26

What did Williams v Roffey show?

Answer 26

where a party has gained a financial/practical benefit, then this may be consideration

Question 27

Williams v Roffey main facts

Answer 27

Roffey avoided penalties from tenant, Williams got additional payments directly from Roffey Bros

Question 28

Hartley v Ponsonby main facts

Answer 28

After desertion, only 19 members of 36 remained and had to do more work than obliged

Question 29

Glasbrook Bors v Glamorgan main facts

Answer 29

The police had provided more men and lived on the site as D wanted, providing protection in a different way than they usually would’ve, there was a sufficient consideration