Consideration- Paper 3 Flashcards
Define consideration
The thing value going between two parties
3 Rules
- Must be sufficient; need not be adequate
- Consideration must not be given in the past (except implied promises)
- Consideration must move from the promise
Chappel v Nestle
Good consideration must have economic value , services you would usually pay for
Thomas v Thomas
It does not matter fit eh two things being exchanged are not of equal economic value, as long as they both have some economic value
Jones v Padavatton
Giving up something of value, even if it’s not given to the other party, can be good consideration
Re McArdle
Any consideration cannot come before the agreement was made, someone cannot do something voluntary and then demand compensation for it
Re Caseys patent
There was an implied promise of payment here; this is an exception to the rule on past consideration. As an employee is expected to get payed for their work
Colins v Godfrey
Doing something that you are already obligated to do is not good consideration
Glasbrook v Glamorgan
Going beyond what is already required of you is good consideration
Stilk v Myrick
Even if you are promised more money for an existing contractual duty, it is not enforceable as there is no extra consideration
Hartley v Ponsonby
If working conditions change meaning you are working more than originally required of you, this can act as extra consideration
Williams v Roffey
One party getting a ‘practical benefit’ is good consideration
Scottson v Pegg
You can make multiple contracts using the same consideration as you’re only increasing your own chances of getting sued
Tweddle v Atkinson
People who have not given any consideration are not able to sue as they are not part of the contract
