Contract - Consideration

Question 1

what is consideration?

Answer 1

consideration is said to exist when the law accepts that there is a demonstrable benefit and/or a detriment

Question 2

Consideration definition - Thomas v Thomas

Answer 2

Consideration to be sufficient but not necessarily adequate; ‘something which is of some value in the eyes of the law’

Question 3

Consideration definition - Currie v Misa

Answer 3

The act or promise said to constitute the consideration may be both a detriment to the promisor and a corresponding benefit to the promisee

Question 4

Chappell v Nestle

Answer 4

Consideration legitimises the contract

Question 5

What is ‘something of value’ in the sight of the law? (incl. 2 cases)

Answer 5

• Consideration cannot not involve a promise to give up a right which is not possessed (White v Bluett)
• EXCEPTION: Hamer v Sidway - giving up drinking, smoking + gambling (bad habits) is seen as valuable

Question 6

Duty to a 3rd party

Answer 6

• Cannot be consideration

Question 7

Public Duty (incl. 2 cases)

Answer 7

• Not consideration (Denney v Reppert)
• Unless going above their pre-existing duty (Glasbrook v Glamorgan)

Question 8

Duty under the same contract (incl. 2 cases)

Answer 8

• If there was already a promise to do something this is not consideration (Stylk v Myrick)
• HOWEVER if extra duties are used this is consideration (Hartley v Ponsonbly)

Question 9

Williams v Roffey Bros

Answer 9

Consideration if a ‘practical benefit’ is received

Question 10

Foakes v Beer; MWB Business

Answer 10

Part-payment of debt is not consideration

Question 11

Pinnel’s Case

Answer 11

promise to pay part of a debt cannot be consideration for a discharge of the whole debt
exceptions: agreeing to accept the lesser sum, agreeing to accept something other than money, agreeing to pay in a different way, promissory estoppel

Question 12

Re Selectmove

Answer 12

the principle from Williams v Roffey Bros (consideration -> practical benefit) cannot be extended to circumstances covered by Foakes v Beer

Question 13

Roscorla v Thomas

Answer 13

Past consideration is generally not good consideration - an act followed by a promise will not be enforced by the courts

Question 14

Pao On v Lau Yiu Long

Answer 14

Past consideration can be good in certain circumstances (e.g. an act done before the giving of a promise to make a payment)
- if it was done at the promisor’s request and the parties understood that the act was to be paid for at a later date