Consideration

Question 1

Definition

Answer 1

Consideration is the thing each party puts into the contract.
Must be of value and real=(CHAPPEL V NESTLE)

Is the benefit and detriment to both sides= (CURRIE V MISA)

Question 2

Performance of an existing duty
-2exceptions

Answer 2

-if you only do what u were already bound to do is NOT a good consideration=( STILK V MYRICK)

-exception 1 = something extra then good consideration = (HEARTLEY V PONSONBY)

• exception 2 = if party gains extra benefit= (WILLIAMS V ROFFEY)

Question 3

Past consideration NOT a good consideration
1 exception

Answer 3

-by the time agreement takes place consideration is already done, consideration is past will not be a valid contract = (RE MCARDLE)

1 exemption = where there is an implied promise to pay for a particular task BEFORE the consideration is done, then is enforceable= (LAMPLEIGH V BRAITHWAITE)

Question 4

Part payment of a debt

NOT a good consideration

3 exceptions

Answer 4

-if you agree to only part payment of a debt owned to you, you can still claim rest= PINNELS case

1 exemption= accepting something other than money for debt

2 exemption = paying a smaller amount on a date earlier than agreed

3 exemption = repay part of debt at a diff place

Question 5

Privity of a contract

1- exception

Answer 5

Only those who give consideration have rights under contract = ( TWEDDLE V ATINKSON)

1- exception = contracts ( right of third party act 1999) = a p who is not a party to a contract can enforce the contract if he is named in contract or gains benefit from it