Consideration Flashcards
What is required for a contract to be binding?
Consideration must be given by each party.
(Tweddle v Atkinson)
What is the main rule regarding consideration?
Consideration must move from the promisee.
Is consideration required to be adequate or equal on each side?
No, consideration need not be adequate nor equal, but it must be sufficient.
What are the requirements for consideration?
Consideration must be real, certain, and have real value.
(White v Bluett, Chappell v Nestle)
Is past consideration valid?
No, past consideration is not good consideration.
(Roscorla v Thomas)
What is required for good consideration?
Good consideration must be a promise for the future.
(Re McArdle)
When can past consideration be considered good?
When a reward was expected in a commercial situation or when the act was requested by the other party.
(Stewart v Casey, Lampleigh v Braithwaite)
Is £50 in exchange for a house sufficient consideration?
Yes, it is sufficient as it was the price agreed on.
Can the performance of an existing duty be considered for a new contract?
No, the performance of an existing duty cannot be consideration for a new contract (Stilk v Myrick).
What are the exceptions to the rule regarding existing duties as consideration?
Exceptions include when 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).
Is performing an existing public duty considered good consideration?
No, 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.
What happens if a public duty is exceeded?
Exceeding a public duty does amount to good consideration for a promise of payment (Glasbrook v Glamorgan, Ward v Byham).
Can performing a duty owed to a third party be considered good consideration?
Yes, performing a duty owed to a third party is good consideration (Shadwell v Shadwell).
