Consideration - Paper 3 Flashcards
What is the definition of Consideration?
The price for which the promise has been bought, the value in the contract, what both parties agree to give
What are the two types of Consideration?
Executory - A promise for the future
Executed - Already carried out
What was established in White v Bluett?
Consideration must be real, meaning it must have some real value/must exist
Which case held that consideration must be sufficient but need not be adequate?
Chappell v Nestle
What is the rule regarding performance of an existing contractual duty?
If the consideration is only what you were already bound to do, this is not good consideration (Stilk v Myrick)
What was the decision in Hartley v Ponsonby?
If you do something extra, this is good consideration and you can ask for more
Which case held if the party gains an extra benefit, the other party is entitled to extra pay under the contract
Williams v Roffey
What is the definition of Past Consideration?
Something already done at the time the agreement is made, so your thing of value is done before the agreement is made
What was held in Re McArdle?
Past consideration is not good consideration
What is the exception to the rule regarding Past Consideration under Lampleigh v Braithwaite?
Past consideration will be good consideration if there was an implied promise to pay at the time
Which case held that, regarding part payment of a debt, you can claim all the money owed to you even if you promise to accept less?
Pinnel’s Case
Which case confirmed the rule in Pinnel’s Case?
D & C Builders & Rees
What are the three exceptions in which part payment of a debt will be good consideration?
1) Accepting something other than money for the debt
2) Repaying the date at an earlier date or place
3) Promissory estoppel
What is the rule of Privity of a Contract?
Only those who give consideration have rights under the contract
Which case illustrates privity of a contract?
Tweddle v Atkinson
