Consideration Flashcards
Executed consideration
An act for a promise.
Executory consideration
A promise for a promise.
How many rules does consideration have?
5
Rule 1 - consideration need not be adequate but must be sufficient
Case[s]?
Thomas v Thomas
Chappell v Nestlé
Consideration must have?
Value. Even if it is of nominal value.
Happiness does not amount to have any value?
True. However happiness can lead to something of value then it is valid e.g. White v Bluett
Rule 2 - Past consideration is no consideration
Case?
Re McArdle
Where does rule 2 apply?
Where the act has already been done at the time the agreement is made.
Which case demonstrates an exception to the past consideration rule?
Lampleigh v Braithwait
Rule 3 - Consideration must move from the promise
Case?
Tweddle v Atkinson
Rule 4 - Performing a pre-existing duty cannot be the consideration for a new contract
Public duty case?
(Police officer in court)
Collins v Godefroy
Rule 4 - Performing a pre-existing duty cannot be the consideration for a new contract
If there is an extra element there is new consideration, shown in what case?
Hartley v Ponsonby
Rule 5 - A promise to accept part payment of an existing debt instead of paying the whole debt is not consideration
Case linked to part payment?
Foakes v Beer
Rule 5 - A promise to accept part payment of an existing debt instead of paying the whole debt is not consideration
What is the exception to this?
Promissory estoppel
What is promissory estoppel?
A rule that can prevent a person going back on a promise
