Consideration Flashcards
What is consideration
Both parties to a contract must offer something by way of exchange for a contract to be formed.
There must be a _____ not a ___
- bargain
- gift
What is issue 1?
- consideration need not be adequate but must be sufficient
____ arent concerned whether there has been a ___ ___ ____ _____, just that there has been ___ and its ___ __ _____ (case?)
courts
good or bad bargain
one
not a gift
Thomas v Thomas
Consideration must be __ and have ___ ___ (White v ___)
real
some value
White v Bluett
main facts of White v Bluett
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)
main facts Chappell v Nestle
the choco wrappers amounted to consideration even though they were of very little value because the company had requested them
However, what is ___ and of value is not always ___ ____ (case?)
real
easily distinguishable
Ward v Byham
Main facts Ward v Byham
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
___ ___ ___ may also be sufficient consideration, if they have a ___ ___ to it. (_____ v Bischoffsheim)
Giving something up
legal right
Callisher v Bischoffsheim
Callisher v Bischoffsheim main facts
Classed as consideration as C gave away legal right to sue, D gained by not being sued
What is issue 2?
Past consideration is no consideration
Key case for past consideration is no consideration
Re McArdle
past consideration is no consideration (____), Therefore, ___ ____ is only ___ after work has been done , then this is __ ___ _____ and the payment cannot be _____
Re McArdle
if payment
promised
not good consideration
enforced
Past consideration EXCEPTION is often in the case of…? (case?)
commercial agreements
Re Casey’s Patent
Re Casey’s patent main facts
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
(EXCEPTION) This is also the case if the ___ ___ were ____ by the party who later ____ ____ (____ v ___wait)
actions taken
requested
promises payment
Lampeigh v Braithwait
Lampeigh v Braithwait main facts
C had only done the action to obtain royal pardon because he was specifically requested to, therefore D should have withheld the implied promise
However,the exception is if there’s an ____ ____ that there will be a _____
implied promise
payment
However, these exceptions will only mean there is a good consideration if… (case?)
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)
what is issue 3?
performing a pre-existing duty is not consideration for a new contract
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)
pre-existing duty
legally
contractually
can never
sufficient
Stilk v Myrick, Collins v Godefroy
Main facts of Stilk v Myrick
What type of duty is this?
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
Main facts of Collins v Godefroy
What type of duty is this?
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
Consideration can be found however, where a ___ has given more than ___ ___ expected __ ___ ___ (case), or _____ a ____ duty (case)
party
to be
of their duty
(Hartley v Ponsonby)
exceeded
public (Glasbrook Bors v Glamorgan)
What did Williams v Roffey show?
where a party has gained a financial/practical benefit, then this may be consideration
Williams v Roffey main facts
Roffey avoided penalties from tenant, Williams got additional payments directly from Roffey Bros
Hartley v Ponsonby main facts
After desertion, only 19 members of 36 remained and had to do more work than obliged
Glasbrook Bors v Glamorgan main facts
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
