Consideration

Question 1

what is consideration

Answer 1

this means both parties to contract will give something to the other by way of exchange
something for something
law is concerned with bargains and not gifts

Question 2

executed consideration

Answer 2

where the consideration has been carried out

Question 3

executory consideration

Answer 3

a promise to perform acts in the future

Question 4

what are the consideration rules

Answer 4

• consideration needs not be adequate but must be sufficient (amount you give does not need to match what you receive)
• past consideration is not consideration
• consideration must move from the promise
• performing an existing duty cannot be consideration for a new contract
• consideration may be found where contractual duties are owed to a third party
• promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration

Question 5

White v Bluett

Answer 5

• Consideration needs not be adequate but must be sufficient
  cannot be promising not to do something

Question 6

Chappell v Nestle

Answer 6

• Consideration needs not be adequate but must be sufficient
  something as small as chocolate bar wrappers can be considered consideration

Question 7

Thomas v Thomas

Answer 7

• Consideration needs not be adequate but must be sufficient
  something as small a £1 per year rent can still be considered as consideration

Question 8

Re Mc Ardle

Answer 8

• Past consideration is not consideration
  not good consideration as she had already carried out the work before the agreement was made

Question 9

what is the exception to Past consideration is not consideration

Answer 9

if at the time of completing the consideration it is done with the expectation that you will get something in return

Question 10

Collins v Godefroy

Answer 10

• Performing an existing duty cannot be consideration for a new contract
  police officer already had a pre-existing duty to attend court so not good consideration

Question 11

Stilk v Myrick

Answer 11

• Performing an existing duty cannot be consideration for a new contract
  no consideration as performing pre-existing duty to support if cruise members left

Question 12

Hartley v Ponsonby

Answer 12

• Performing an existing duty cannot be consideration for a new contract
  the fact that so many cruise members had left created an element of danger so the amount of work they had to do meant it was good causation

Question 13

Williams v Roffey Bros

Answer 13

• Performing an existing duty cannot be consideration for a new contract
  exception to the rules of performing pre-existing duty is its not good consideration if you are avoiding a detriment

Question 14

Foakes v Beer

Answer 14

• Promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration

Question 15

High Tree case

Answer 15

• exception to a part payment - promissory estoppell
  owed someone money, but can only pay part of it is not good consideration