Consideration

Question 1

An expression of willingness of a contract on certain terms and wholehearted acceptance of an offer that the offeree knows is being made

Answer 1

Allied Marine

Question 2

Currie v Misa Consideration definition

Answer 2

Either a benefit to a person receiving, or detriment to other, or both

Question 3

3 P’s from Pollock (Consideration)

Answer 3

The price you pay for another’s promise

Question 4

Consideration need not be adequate, but must be sufficient

Answer 4

Chappell v Nestle

Question 5

Consideration must have some economic value

Answer 5

Thomas v Thomas

Question 6

Forebearance (promise not do something) is not good consideration, due to public policy issues (floodgate rule)

Answer 6

White v Bluett

Question 7

Possible exception to Forebearance rule if it involves giving up one’s legal rights

Answer 7

Hamer v Sidwar

US Case

Question 8

Past consideration is not good consideration (general rule)

Answer 8

Roscorla v Thomas

Question 9

Possible exception to ‘past consideration is good consideration’ rule if:
The act was carried out at the promisor’s request

Answer 9

Lampleigh v Brathwait

Question 10

Possible exception to ‘past consideration is good consideration’ rule if:
The parties understood from the beginning that the act was to be rewarded in some way

Answer 10

Re Casey’s Patents

Question 11

Performance of existing contractual obligation is not good consideration for a promise to pay more

Answer 11

Stilk v Myrick

Question 12

Possible exception to Stilk v Myrick:

If A exceeds duties or confers extra benefit to B

Answer 12

Hartley v Ponsonby

Question 13

Williams v Roffey

Criteria for possible exception to Stilk v Myrick

Answer 13

• contract for goods/services in return for payment;
• B doubts whether A will complete his obligations;
• B promises additional payment if A completes obligations on time;
• As a result, B obtains a practical benefit or obviates a disbenefit
• Promise not given as a result of economic duress or fraud

Question 14

A promise to do something can amount to consideration even if the promisor is already bound to perform obligation by another party

Answer 14

Scotson v Pegg

Question 15

Part payment of undisputed debts is NOT good consideration for a promise by creditor to forgo balance

Answer 15

Foakes v Beer

Question 16

Exception to Foakes v Beer:

Pinnel’s Case

Answer 16

Part payment is good consideration if debtor gives something different or pays early

Question 17

Exception to Foakes v Beer:

Promissory Estoppel

Answer 17

Promise
Reliance
Inequitable
Defence
Effect

Question 18

Promissory estoppel

Promise - Must be a promise to waive a legal right, which must be intended to be acted upon by other party

Answer 18

Hughes v Metropolitan Rail

Question 19

Promissory estoppel

Reliance - promisee must act upon promise, altering their position

Answer 19

Alan v El Nasr

Question 20

Promissory estoppel

Inequitable - Must be inequitable for promisor to go back on promise

Answer 20

D&C Builders v Rees

Question 21

Promissory estoppel

Defence - Shield not a sword, so will not give rise to cause of action

Answer 21

Combe v Combe

Question 22

Promissory estoppel
Effect - Effect of PE is to extinguish or suspend legal rights.
Can recommence on reasonable notice

Answer 22

High Trees

Question 23

Promissory estoppel
In cases were promisee cannot resume original position, promissory estoppel may operate to permanently extinguish the promisor’s legal rights

Answer 23

Ajayi v RT Briscoe

Question 24

Performance of one’s public/legal duties is NOT good consideration

Answer 24

Collins v Godefroy

Question 25

Exception to Collins v Godefroy:

If not contrary to public policy

Answer 25

Williams v Williams

Question 26

Exception to Collins v Godefroy:

If public duty is exceeded

Answer 26

Glassbrook Bros v Glamorgan