Consideration [Contract Law]

Question 1

Two Types of Consideration

Answer 1

1. Executory Consideration:
   a promise to do something in the future
2. Executed Consideration:
   no promise but offeree does do some act

Question 2

Acronym for memorarion?

Answer 2

SPEM

Question 3

S [Sufficient]

Answer 3

The value of the thing offered must be of sufficient value. This means that it must be real and have some sort of value (Thomas v Thomas).

• White v Bluett: no legal right to complain/ not natural love or affection

Question 4

P [Past consideration]

Answer 4

The promise must come before the act and consideration. It can’t be made retrospectively (Re McArdle)

However, in some situations, like when someone is providing a service, there is an implied promise to pay (Lampleigh v Braithwaite)

Question 5

E [Existing duty]

Answer 5

A pre-existing duty cannot be consideration for a new promise (Stilk v Myrick). But, if you do something extra to that existing duty, then this can be consideration for a new promise (Hartley v Ponsonby).

But, if the promisee’s act provides a benefit of avoiding some sort of extra burden to the promisor, this can be consideration for a new promise (Williams v Roffey Brothers).

Question 6

M [Move from Promissee]

Answer 6

The consideration must have moved from the promisee, meaning that the promisee must have actually performed their end of the promise (Tweddle v Atkinson).

Question 7

What are the two parties called?

Answer 7

the Proomisor and Promisee

Question 8

Definition of Consideration

Answer 8

‘Some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other’

Currie v Misa