Consideration - Contract Law Flashcards
What is consideration? (Case study?)
Currie V misa: some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other’.
What are the two types of consideration?
Executed consideration: an act in return for a promise
Executory consideration: a promise for a promise.
Thomas V Thomas
Consideration need not be adequate but must be sufficient.
What is meant by sufficient in Thomas v Thomas?
It can be minimal/minute as long as there is evidence of some real value.
Chappell V Nestle Co Ltd
The law does not concern itself with whether a good or a bad bargain has been made, only that a bargain exists. As long as there is some value, consideration will be adequate.
What is past consideration?
Something that is already done at the time the agreement is made. Where considerations is past, it has no value.
Re McArdle
Consideration must not be past.
Exception to past consideration?
When the promisor makes an express or implied request for a particular task, there must be an implied understanding that the task should be paid for.
Re Casey’s patent
Implied that when he worked on the patents, he would receive some payments.
Lampleigh v Braithwaite
Payment is implied when the act has been requested by the other party.
What is meant by consideration must flow from the promisee?
A person cannot sue or be sued under a contract unless he himself has provided consideration for it.
Tweddle V Atkinson
Consideration must move from the promisee.
What is meant by performing a pre-existing duty cannot be the consideration for a new contract?
A pre-existing duty is something that you are already legally required to do. If someone just does that they were already bound to do, this is not good consideration.
Stilk V Myrick
Where a party is already legally obliged to do something, this can never amount to sufficient consideration for a new contract.
What is meant by multiple contracts can be created where new consideration of value is evident?
It must be proved that something additional is being provided for new consideration to be recognised.
