Consideration

Question 1

What is consideration?

Answer 1

Something of value which causes a benefit and detriment to both parties

Question 2

Types of consideration

Answer 2

Executory
Executed
Past

Question 3

What is past consideration?

Answer 3

When the act is performed before the promise or agreement is made

Question 4

What is executed consideration?

Answer 4

When a promise is made by one of the parties (used for unilateral contracts)

Question 5

What is executory consideration?

Answer 5

When both parties exchange promises (used in bilateral contracts)

Question 6

Rules on consideration

Answer 6

1) consideration need be adequate not sufficient
2) consideration must pass from promisee to promisor
3) past consideration is bad consideration
4) if one has a previous obligation to act this is not consideration
5) part payment + consideration may discharge a whole payment

Question 7

Case for consideration must pass from promisee to promisor

Answer 7

Tweddle v Atkinson

Question 8

Facts of Tweddle v Atkinson

Answer 8

add these in too tired right now

Question 9

Case related to ‘consideration need be adequate not sufficient’

Answer 9

Thomas v Thomas

Question 10

Facts of Thomas v Thomas

Answer 10

The husband of C expressed he wished for her to stay in the house after his death
She did so paying £1 rent a year
Executors tried to remove her from the house

Question 11

Outcome of Thomas v Thomas

Answer 11

Executors tried to argue there had been a breach as no consideration was given
Court held the £1 rent would suffice. It was established that some consideration was enough, even if it was not equal

Question 12

Case relating to past consideration…

Answer 12

Re McArdle

Question 13

Facts of Re McArdle

Answer 13

C lived with husband in his mothers house
Mother said the house would be given to children on her death
C spent her money repairing the house
Mother made children sign agreement to pay C back
When she died children got the house and didnt repay the money
C sued

Question 14

Outcome of Re McArdle

Answer 14

C’s claim was unsuccessful
She had completed the act before the agreement had been reached
Therefore this is past consideration and not accepted in court

Question 15

Why is consideration not accepted if one already had a pre- existing duty?

Answer 15

Because consideration relates to the idea of detriment, one will not be at detriment if they were obliged to complete it

Question 16

Case relating to pre-existing duty

Answer 16

Stilk v Myreck

Question 17

Facts of Stilk v Myreck

Answer 17

Whilst sailing a ship 2 of the 11 crew member deserted
Crew demanded more money
Captain agreed but refused to pay on return

Question 18

Outcome of Stilk v Myreck

Answer 18

The court stated that the sailors already had a contractual duty to sail the ship too and from therefore they had not provided consideration this the captain did not have to either

Question 19

Exception to pre-existing duty rule (+case)

Answer 19

If the contractual duty is exceeded then this will be consideration - Hartley v Ponsby

Question 20

Facts of Hartley v Ponsby

Answer 20

Very similarly to Myreck only this time 19/36 crew remained

Question 21

Outcome of Stilk v Myreck

Answer 21

Court held the captain needed to pay them. They had exceeded their contractual duty because their lives were endangered sailing with such few soldiers. This was sufficient consideration