Consideration

Question 1

What makes a contract binding ?

Answer 1

Consideration must be given to by each party to make a contract binding.

Question 2

What is the main rule of consideration + case ?

Answer 2

A number of rules and exceptions have developed. The main rule is that consideration must move from the promisee ( TWEEDLE v ATKINSON )

Question 3

IF RELEVANT : What must consideration be + cases ?

Answer 3

Consideration need not be adequate or equal on each side ( THOMAS v THOMAS ) but must be sufficient. It must also be real and certain ( WHITE v BLUETT ) and must have real value ( CHAPPELL v NESTLE )

Question 4

IF RELEVANT : What is not good consideration + cases ?

Answer 4

Past consideration is not good consideration. This is where a party promises to pay for something that has already been done ( ROSCORLA v THOMAS ). Good consideration must be a promise for the future ( RE MCARDLE )

Question 5

IF RELEVANT : What exceptions means past consideration will be good consideration + cases ?

Answer 5

Where a reward was expected because it was in a commercial situation ( STEWART v CASEY ) or where the act was requested by the other party ( LAMPLEIGH v BRAITHWAITE )

Question 6

IF RELEVANT : What cannot be consideration + case ?

Answer 6

Performance of an existing duty cannot be consideration for a new contract ( STILIK v MYRICK )

Question 7

IF RELEVANT : What are the exceptions for this rule + cases ?

Answer 7

Where an existing duty has become more difficult or different ( HARTLEY v PONSONBY ) and if promising to pay more for an existing duty gives a “benefit” or avoids a “detriment” to the promisor ( WILLIAMS v ROFFEY BROS ).

Question 8

IF RELEVANT : What else is not good consideration + case ?

Answer 8

Performing an existing public duty , such as a policeman giving evidence at court ( COLLINS v GODEFROY ) is not good consideration unless it goes beyond what is normally required.

Question 9

IF RELEVANT : What is the exception to this rule + cases ?

Answer 9

Exceeding a public duty does amount to good consideration for a promise of payment ( GLASBROOK v GLAMORGAN , WARD v BYHAM )

Question 10

IF RELEVANT : What else is good consideration + case ?

Answer 10

Performing a duty owed to a third party is good consideration ( SHADWELL v SHADWELL )