Consideration Flashcards
Definition of consideration
Defined in Currie v Misa as ‘Some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by other’
Executed consideration
Where the promisor asks for something in exchange for his promise and the promisee provides consideration by giving the promisor what he has requested
Executory consideration
A promise made in return for a promise - where both promises are still to be preformed- such as a contract between a buyer and seller for the future delivery of a car on credit
The consideration does not need to be adequate but it must be sufficient
The law does not concern itself whether the consideration is fair and equal, as the exchange must be sufficient (Thomas v Thomas)
What is deemed not sufficient?
Love and affection are not seen as sufficient in the eyes of the law (White v Bluett)
What is an exception for love and affection?
Where one party exceeds their duty, there will be good consideration even when it involves love and affection (Ward v Byham)
Consideration must move from the promisee?
A person cannot sue or be sued under a contract unless they have provided consideration for it themselves (privity)
There must be an exchange from the person who wants to enforce the promise (Tweddle v Atkinson)
Past consideration is not good consideration
Consideration will not count if it has already been given before the agreement had been made (Re McArdle)
Exceptions for past consideration?
- If it is implied there will be a reward before the consideration takes place (Re Casey’s Patent)
- The task is at the offerors request (Lampleigh v Braithewaite)
Performing a contractual duty is not good consideration for a further payment
This is because the offeree is already receiving a wage for their contractual duties, therefore merely completing them would not entitle them to a further payment even if this is to an exceptional standard (Stilk v Myrick)
Exceptions for performing a contractual duty is not good consideration for further payment
- Where carrying out the contractual duties become more dangerous or the job becomes almost impossible, then offers to be will be good consideration (Hartley v Ponsonby)
- Where on party saves the other from a detriment, there will be good consideration (Williams v Roffey Bros)
Performing a public duty is not good consideration for a further payment
This is because the offeree is already expected to carry out their public duties, therefore performing them does not entitle them to a payment (they also receive a wage for this) (Collins v Godefroy)
Exceptions for performing a public duty is not good consideration for a further payment
Where someone under a public duty has gone above and beyond what is expected of their duty, there will be good consideration (Glasbrook Bros v Glamorgan)
