Consideration Flashcards
Dave a builder owes his supplier $50,000 for materials. Dave has been unable to sell the house he has recently built at a profit, due to a slump in the property market, and has only $45,000, The supplier agrees to accept the $45,000 to prevent Dave from going out of business. Six months later the supplier learned that Dave has just gained a building contract worth $5 million.
a) Dave will have to pay the remaining $5000 to the supplier
b) Dave can use the suppliers promise as a defence to a claim for the money
c) The supplier can recover the material used by Dave
d) Dave can sue the supplier
a) Dave will have to pay the remaining $5000 to the supplier
Mary a student, asks Donald, her teacher, if he will give her good tuition for which she will pay him $100.
a) There is a contract. Mary will have to pay the $100 to Donald
b) Mary will be able to sue Donals if his tuition is mot good
c) Donald cannot demand the $100 from Mary. He is only doing his duty
d) Donald can sue for the $100 if Mary does not pay
c) Donald cannot demand the $100 from Mary. He is only doing his duty.
Sid, the manager of a firm, promises Danny, a packer, $100 on top of his wages if he will stay late to work one evening to get out a rush order.
a) There is no contract. Danny is only doing his job
b) Danny is entitled to the $100. He is doing extra to his normal job
c) Danny can only be paid the $100 if he does $100 worth of extra work
d) Sid can sue Danny if he refuses to stay late
b) Danny is entitled to the $100. He is doing extra to his normal job
In which one of the following circumstances is there no consideration ?
a) Ben promised to clean Edna’s car in return for Edna’s promise to do Ben’s washing up.
b) ale-Ann gave Sundeep £80 for her designer
c) Monica stated that she would give Theresa’s children a lift to school everyday
d) Bernard gave Timothy £50 for cleaning his motorbike.
c) Monica stayed that she would give Theresa’s children a lift to school everyday
Which one of the following statements is not correct ?
a) consideration need not benefit the promisor
b) Executory consideration is where something is to be done in the future
c) Executed consideration usually occurs in bilateral contracts
d) Executed consideration is where, at the time of the contract, consideration has already been performed
d) Executed consideration is where, at the time of the contract, consideration has already been performed
In which one of the following circumstances would consideration be valid ?
a) Tammy promised Daniel the biggest bedroom as he was the oldest child
b) Thomas promised Roberto £2 for his house
c) Richard promised Katherine £100 if she would stop complaining
d) Ella looked after Carla’s dog while she was on holiday and when Carla returned she promised £20 to Ella
b)Thomas promised Roberto £2 for his house
Which one of the following statements is incorrect ?
a) Payment of a lesser sum on the day in satisfaction of a greater cannot be any satisfaction for the whole
b) Where a person is merely carrying out duties they are legally obliged to perform there will be no consideration.
c) Performance of a pre-existing contractual duty is generally not valuable consideration
d) Performance of a pre-existing contractual duty will never be valid consideration
d) Performance of a pre-existing contractural duty will never be valid consideration
In which one of the following cases was consideration found not to exist?
a) Combe v Combe 1951
b) Foakes v Beer (1884)
c) Thomas v Thomas (1842)
d) Lampleigh v Bratihwaite (1615)
b) Foakes v Beer (1884)
Which one of the following cases established that promissory estoppel can only be used as a form of defense and not a cause of action.
a) Re Selectmove Ltd (1995)
b) Williams v Roffey (1990)
c) Hughes v Metropolitan Railway Co (1877)
d) Combe v Combe (1951)
d) Combe v Combe
