Contract

Question 1

Identifying Consideration

Answer 1

Consideration may be a promise or an act given in return
Consideration need not be adequate:
Consideration must be sufficient:
Past consideration is not good consideration

Question 2

Exception to past consideration

Answer 2

The past act/promise was done at the promisor’s request
there was a mutual understanding b/w parties that the act/promise would be consideration
Had the promise been made in advance it would have been legally enforceable

Question 3

Contractual variations

Answer 3

For this to be binding, there needs to be an agreement, consideration
and intention to create legal relations

Question 4

Alteration promises to pay more

Answer 4

General rule: performing an obligation owed is not consideration in exchange for more pay. The party needs to exceed a contractual obligation (a detriment to the promisee and a benefit to the promisor)
NB: a promise to pay more under duress may be set aside

Question 5

Alteration promises

Answer 5

Rule in Pinnel’s Case: In the case of an undisputed debt, an agreement b/w creditor and debtor that the creditor will simply accept part payment in full and final settlement of the full amount is not binding on the creditor

Question 6

Promissory Estoppel

Answer 6

If you made a promise not to enforce your legal rights
someone has relied on the promise, even though they have not provided anything in return
if you try to enforce your legal rights you will be ‘estopped’ if it would inequitable in all the circumstances to do so

Question 7

Privity of contract

Answer 7

General rule: only the actual parties of a contract are bound by it and therefore have rights and obligations under it (third parties can’t sue or be sued)

Question 8

Contracts (Rights of Third Parties) Act 1999

Answer 8

The contract expressly provides that they may acquire a benefit (s 1(1)(a)); or
The term purports to confer a benefit on them (s 1(1)(b)).

Question 9

Agency

Answer 9

The simplest way in which agency can be created is by the principal giving the required authority to the agent to contract on its behalf.

Question 10

Types of authority

Answer 10

Actual authority: can be granted expressly or impliedly

Apparent authority: an authority which has been apparent to the third party by the principal. Must be created by the principal and this representation must have been intended to be and in fact was acted upon by either party.

Question 11

More on agency