Consideration

Question 1

Consideration must be of some value

Answer 1

Thomas v Thomas

Question 2

Value of consideration does not have to be financial

Answer 2

Chappell and Co v Nestle Co

Question 3

If it is believed that claim has merit and is dropped, then it is valid consideration

Answer 3

Cook v Wright

Question 4

If claim is known to be worthless and dropped, it is not valid consideration

Answer 4

Wade v Simeon

Question 5

No consideration if no intention to create legal relations

Answer 5

White v Bluett

Question 6

Consideration must be requested

Answer 6

Combe v Combe

Question 7

Request for consideration can be inferred by the court (marriage)

Answer 7

Shadwell v Shadwell

Question 8

If promisee does not give anything in return, then it is gift

Answer 8

Dickinson v Abel

Question 9

Consideration must not be past

Answer 9

Roscorla v Thomas, Eastwood v Kenyon

Question 10

Exception of implied assumpsit, if there is understanding that act would be remunerated

Answer 10

Lampleigh v Braithwait

Question 11

Implied assumpsit: 1. Act must be done at promisor’s request; 2. parties must have understood that act was to be remunerated; 3. payment or conferment of benefit must be legally enforceable

Answer 11

Pao On v Lau Yiu Long

Question 12

Preforming an existing legal duty is not valid consideration

Answer 12

Collins v Godefroy

Question 13

Going above legal duty can be good consideration

Answer 13

Glasbrook Bros v Glanmorgan CC

Question 14

Contractual duties owed by third party can be consideration for a contract

Answer 14

The Eurymedon

Question 15

Variation Agreement to do same for more not consideration

Answer 15

Stilk v Myrick

Question 16

Variation Agreement to do more for more valid consideration

Answer 16

Hartley v Ponsonby

Question 17

Variation to do same for more can be consideration if practical benefit is obtained

Answer 17

Williams v Roffey Bros

Question 18

Variation agreements to do same for less not good consideration

Answer 18

Pinnel’s Case, Foakes v Beer, Re Selectmove

Question 19

Part payment in different location can be good consideration for variation agreement

Answer 19

Vanbergen v St Edmunds Properties

Question 20

Part payment made by someone other than debtor can be good consideration for variation agreement

Answer 20

Hirachand Punamchand v Temple

Question 21

Payment of debt in alternate form can be good consideration

Answer 21

Pinnel’s Case (but not cheque - D and C Builders Ltd v Reeves)

Question 22

Variation agreement to accept same for less may be good consideration if practical benefit

Answer 22

MWB v Rock Advertising (But conflicting authorities of UKSC and UKCA)

Question 23

Promissory estoppel cannot be cause of action

Answer 23

Combe v Combe

Question 24

Promise not to enforce legal rights must be clear and unequivocal

Answer 24

Woodhouse v Nigerian Produce Marketing, Hughes v Metropolitan Railway

Question 25

Promissory estoppel suspends right of promisor to enforce their position

Answer 25

Tool Metal Manufacturing Co v Tungsten Electric Co.

Question 26

Must be reliance on promise

Answer 26

Hughes v Metropolitan Railway

Question 27

Reliance need not be detrimental

Answer 27

Alan v El Nasar, Central London Property Trust v High Trees

Question 28

Reliance can be interpreted broadly (part-payment of debt)

Answer 28

Collier v P and M J Wright

Question 29

Must be inequitable for promisor to resile from promise

Answer 29

Hughes v Metropolitan Railway, Central London Property Trust v High Trees

Question 30

For it to be inequitable, no need to show detriment

Answer 30

The Post Chaser

Question 31

Estoppel in part-payment of debt: 1. debtor offers part-payment, 2. creditor accepts the offer, 3. debtor acts on promise of creditor to accept part payment, 4. it is inequitable for creditor to resile from promise

Answer 31

Collier v Wright, per Arden J