Consideration Flashcards
What is consideration?
Consideration is the bargaining element of a contract.
Someone getting something for something else
A benefit and a detriment must be visible
Thomas v Thomas
Facts: • C’s husband expressed a wish that his wife should live the rest of her life in the house in which they had lived
• When he died, executors made Contract with C to pay £1 a year and keep the house in good repair
•Argued lack of consideration by C and therefore no contract
Judgment: For Claimant
L.P: • Consideration needs to be sufficient not adequate
• Has to be something of value in the eyes of the law
Chappell v Nestle co
Facts: • D advertised records for sale pursuant to sending money and three wrappers from their milk chocolate product
• C argued D was in breach of statute by doing this
• dispute arose whether wrapper were good consideration
Judgment: For D
L.P: • People were encouraged to buy nestle products so that was their benefit
• Principle of sufficiency constituting economic value is not consistent
Re McArdle
L.P: Past consideration is no consideration
Glasbrook Bros v Glamorgan CC
Facts: • A strike at a coal mine caused owners concern about the safety of certain workers
• owners sought the help of the police who said a mobile group would be on hand
•owners insisted on officers being billed
• When Police came to collect payment c refused stating police where doing their duty of upholding the peace
Judgment: Had to pay
L.P: • Beyond polices usual duties so reasonable to expect payment
• going beyond what was reasonably expected -> consideration
Stilk v Myrick
Facts: • During a voyage from London to Baltic some crew deserted
• Captain promised remaining crew if they remain and help sail ship back to London then he will pay the remainders the deserters wages
• Once shipped returned, captain refused to pay
Judgment: For defendant
L.P: • Cannot use existing duty as consideration
