Contract Law 2 Flashcards
What does the law enforce regarding obligations?
Obligations assumed unless policy says to exclude them to protect vulnerable parties
This reflects the modern idea of enforceability in contract law.
What factors contributed to the decline of the classical contract model in the 20th century?
- State intervention
- Consumer regulations
- Regulation of commercial agreements
- Standard form contracts
These factors highlight the shift towards protecting consumers and regulating agreements.
What are the ideas in favor of freedom of contract?
- Moral obligation to keep promises
- Expectation-based remedies
- Economic efficiency
- Wealth maximization
- Risk allocation
These ideas emphasize the importance of individual autonomy in contractual agreements.
Does the freedom of contract (FoC) explain the law?
Fits some rules: Offer and acceptance, Consideration, ITCLR, Objective approach
However, it does not truly reflect the will of the parties.
What are the components of a model contract under freedom of contract?
- The bargain
- One-off transactions between strangers
- Offer and acceptance
- Negotiation process
- Consideration
- Terms
- Remedies (Money damages)
This outlines the basic structure of a contract based on freedom of contract principles.
What are characteristics of real-world contracts?
- Relational contracts
- Evolution over time
- Automated communication
- Standard form contracts and ‘t&cs apply’
- Online contracts
- Market forces and movements
- Risk allocation
- Uncertainty of terms
These characteristics reflect the complexities and dynamics of actual contractual agreements.
What is procedural unfairness in contracts?
- How the contract was made
- Was the process fairly conducted?
- Did both parties freely agree to be bound?
- Did one party take advantage of the other?
Procedural unfairness addresses the fairness of the contract formation process.
What is substantive unfairness in contracts?
- Content of terms
- Favorability to one party
- Fairness of agreed terms
- Distinction between bad bargains and procedural unfairness
Substantive unfairness focuses on the actual terms and their impact on the parties involved.
What role does consumer bargaining power play in contracts?
Most consumer contracts are not the result of a bargaining process
This raises questions about the fairness and equality in consumer contracts.
What is the Consumer Rights Act 2015 related to?
Consumer protection statutes based on inequality of bargaining power
This act aims to address issues of fairness and protection for consumers in contractual agreements.
Should freedom of contract prevail where there has been meaningful negotiation between supplier and consumer?
True or False?
This question considers the balance between individual autonomy and consumer protection.
What is relational theory?
Perspective that considers contracts as evolving relationships rather than rigid agreements
Emphasises ongoing relationships, trust and flexibility
What are the key features of relational theory?
- Reciprocity is a dominant element
- Some contracts extend over time and involve mutual trust and cooperation
- Every transaction is deeply embedded in a range of interconnected relations
- Contracts change and develop over time
- Ongoing communication between parties
These features highlight the dynamic nature of contracts in relational theory.
Give examples of relational contracts.
- Employment contracts
- Supply chain agreements
- Construction projects
- Shareholder agreements
These examples illustrate the practical application of relational theory in various contexts.
True or False: English law recognises a general concept of good faith.
False
Instead, ‘piecemeal solutions’ have been developed in response to various problems.
List some mechanisms developed under English law to address good faith.
- Regulation of exemption clauses
- Penalty rule
- Duress and undue influence
- The ‘red hand’ rule
- Express provisions requiring good faith
- Implied duties of good faith
These mechanisms are designed to handle issues of good faith in specific contexts.
What does contextualism assert about transactions?
Manifestations of assent are often messy, implied by conduct, and incomplete
Courts should consider relevant factors outside the express agreement.
How does classical contract theory differ from relational contract theory?
- Classical theory emphasises formal terms set at the time of contracting
- Relational contracts rely on non-legal norms of trust, expectations, and adaptability
- Relational theory acknowledges long-term relationships
- Classical theory prioritises formally expressed expectations contained in the contract
These differences highlight the contrasting approaches to understanding contracts.
What are some critiques of relational contract theory?
- Enforceability and judicial interpretation of contracts
- Power imbalances
- Legal (un)certainty
These critiques address potential issues arising from the flexibility and informal nature of relational contracts.
Fill in the blank: Classical theory emphasises __________ set at the time of contracting.
formal terms
This contrasts with relational contracts which focus on ongoing relationships.
What concern arises from power imbalances in relational contracts?
One party might exploit flexibility to the disadvantage of the other
Weaker parties may benefit from the protection of contractual formality.
Fill in the blank: Absence of clear terms in contracts can result in __________ and, in turn, disputes.
unpredictability
This unpredictability can lead to increased litigation risk.
What is the primary goal of damages in breach of contract cases?
To enable the claimant to recover in damages what they expected to gain from a contract
Damages protect the claimant’s expectation interest to a certain extent.
What are the main remedies available after establishing a breach of contract?
- Damages (liquidated or unliquidated)
- Termination
- Specific performance
- Restitution
These remedies address different aspects of a breach and the claimant’s entitlements.
What stages need to be addressed in a claim for damages?
- Identify breach, losses, and remedies available
- Measure of loss
- Non-pecuniary loss
- Causation
- Remoteness
- Reduction
Each stage is crucial in determining the outcome of a damages claim.
What is the general rule regarding non-pecuniary loss in damages claims?
Damages for non-pecuniary loss, such as mental distress, are generally not recoverable.
Exceptions apply if the contract’s purpose was to provide pleasure, relaxation, or peace of mind.
What are the steps involved in applying the ‘measure’ of loss?
- Expectation interest
- Calculate through:
- Different in value
- Cost of cure
- Loss of amenity
- Consumer surplus
- Reliance interest
These calculations are essential for quantifying the loss into an award for damages.
What must be established to prove factual causation in a damages claim?
The breach must be a dominant or effective cause of the loss.
Intervening acts may affect this determination.
What is the test for remoteness in damages claims?
- Loss arising naturally
- Unusual, abnormal losses require actual knowledge
- Test of reasonable contemplation
The traditional test assesses whether losses were reasonably foreseeable.
What is required of the injured party to reduce their damages?
The injured party should take all reasonable steps to mitigate their loss.
This can include accepting another contract from the party in breach.
What is the implication of contributory negligence in breach of contract cases?
Only applies where the defendant’s liability is the same as in a negligent breach independent of the contract.
This principle can affect the damages awarded.
What are ‘agreed damages clauses’?
Clauses that specify a predetermined amount of damages in the event of a breach.
These clauses can simplify the process of determining damages.
What is the significance of ‘mental distress’ in damages claims?
It is generally not recoverable unless tied directly to the breach’s failure to provide specific contractual benefits.
This includes cases where physical inconvenience or discomfort is caused.
What is a lawful legal option following a breach of contract?
Termination of contract
Termination is part of a range of remedies available to the innocent party.
What are some reasons for considering termination of a contract?
Relationship breakdown, socio-economic turmoil, strategic decision making
Examples of socio-economic turmoil include financial crashes and pandemics like COVID-19.
What must be checked to determine if termination is a lawful option?
Terms of the contract, termination clauses, common law entitlement
The common law entitlement to terminate is based on repudiation.
What is actual breach?
Failure or refusal to perform contractual obligations without lawful excuse
It can also occur when a party incapacitates themselves from performing.
What is anticipatory breach?
Indication by one party of an intention not to perform before performance is due
This can be through renunciation or incapacity.
What does repudiation signify in contract law?
Renunciation or incapacitation by one party
It allows the innocent party to treat the contract as discharged immediately.
What are conditions in the context of breach of terms?
Terms treated as a repudiation, allowing discharge of the contract
Contracting parties classify the importance of terms in their contract.
Define innominate terms.
Unclassified terms not categorized as conditions or warranties
They can be breached in various ways.
What is the Substantial Whole Benefit (SWB) test?
Assessment of benefit sought vs actual breach
It considers seriousness of loss caused, value of performance received, and adequacy of damages.
What is the right of election in contract law?
Option to affirm the contract or terminate
It involves unequivocal intention and can be irrevocable.
List the ways a contract can come to an end.
- Discharge by performance
- Discharge by agreement
- Discharge by frustration
- Discharge by breach (repudiatory)
This includes renunciation or anticipatory breach.
What is required for claiming the contract price after a breach?
Need for contract breaker’s cooperation, no legitimate interest
Cooperation is essential for enforcing claims.
True or False: Termination of contract can undermine contractual security.
True
Common law sets a high threshold for lawful termination to protect contractual security.
What is the definition of frustration in contract law?
Occurs whenever law recognizes that without default of either party, a contractual obligation has become incapable of being performed because the circumstances in which performance is called for would render it a thing radically different from that which was undertaken by the contract
A frustrating event discharges the contract.
What is one common law ground for frustration?
Impossibility
Where a contract becomes impossible to be performed (e.g., because the subject matter is destroyed).
Give an example of a frustrating event.
Subject matter destroyed, death, illness, temporary unavailability of subject matter
These events can lead to the frustration of a contract.
What is frustration of purpose?
A contract may be frustrated where the common purpose for which the contract was entered into can no longer be carried out
This applies even if it is still physically possible to continue with the contract.
How does supervening illegality relate to frustration?
Frustration can occur where a change in law or government intervention makes performance illegal.
What is a limitation to frustration regarding contracts that become more difficult to perform?
Contracts that become more difficult or expensive to perform are not generally held to have been frustrated.
What is self-induced frustration?
Frustration will not apply where the event was induced by one of the parties.
How do foreseeable events affect the frustration doctrine?
If the event was foreseeable and not provided for in the contract, then the frustration doctrine will not apply
By failing to make provision for it, the parties are considered to have implied acceptance of the risk.
What are force majeure clauses?
Express contractual provision for strikes, floods, fires, closure of shipping lines, etc.
What are some potential effects of frustration?
Law Reform (Frustrated Contracts) Act 1943
This Act outlines the implications of frustration in contract law.
What is an agreement mistake?
Mistake as to identify
Refers to a misunderstanding regarding the identity of the parties involved in a contract.
What distinction is made in the context of contracts?
Distinction made between contracts made in writing and contracts made orally (or face-to-face)
This highlights the importance of the method of contract formation.
What does a mistake as to the nature of the document signed refer to?
Mistake as to the nature of the document signed
Indicates that a party may not fully understand the legal implications of the document they are signing.
What is a mistake as to a term of the contract?
Mistake as to a term of the contract
Involves misunderstanding specific terms or clauses within the contract.
What are the two types of mistakes in contracts?
Unilateral or mutual (cross purposes mistake)
Unilateral mistake involves one party, while mutual mistake involves both parties misunderstanding.
What is meant by agreement mistake in equity?
Agreement mistake in equity
Refers to mistakes that may be remedied through equitable principles.
What is equitable relief?
Equitable relief
A judicial remedy that provides fairness rather than monetary compensation.
What does rectification mean in contract law?
Rectification
The process of correcting a written contract to reflect the true intentions of the parties.
What characterizes a common mistake?
Fundamental – unknown to the parties, the contract (as agreed) is impossible to perform
A common mistake occurs when both parties are unaware that the contract cannot be fulfilled.
What is res exitincta?
Mistake as to subject matter
Refers to a situation where the subject matter of the contract does not exist at the time of the agreement.
What happens if the subject matter of the contract is not in existence?
There can be no contract
If the subject matter is nonexistent (res extincta), the contract is void.
What does res sua refer to?
Mistakes as to ownership
Involves a misunderstanding regarding the ownership of the subject matter of the contract.
What is the implication of a mistake as to quality?
Generally not sufficiently fundamental to render the contract void at common law
A mistake about quality does not usually make performance impossible.
What is the key case involving a dispute over the interpretation of a contract concerning the sale of goods?
Schuler AG v Wickman Machine Tool Sales Ltd (1974)
This case addressed the importance of clear contract terms and the implications of breach.
Which case is significant for its ruling on the non-performance of contractual obligations?
Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd
This case highlighted the distinction between conditions and warranties in contracts.
What case dealt with the issue of misrepresentation in a contractual context?
Farley v Skinner 2001
This case involved claims of misrepresentation affecting the decision to enter into a contract.
What is the name of the case that addressed the issue of quantifying damages in a construction contract?
Ruxley Electronics
This case is notable for its discussion on the measure of damages and loss of amenity.
Fill in the blank: The case _______ involved a dispute regarding the interpretation of a contract for the sale of goods.
Schuler AG v Wickman Machine Tool Sales Ltd (1974)
This case is often referenced in discussions about contractual obligations.
True or False: Farley v Skinner is primarily concerned with breach of contract.
True
The case focuses on issues related to misrepresentation rather than direct breach.
What legal principle was established in Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd?
Distinction between conditions and warranties
This principle helps determine the remedies available for breach of contract.
What key issue was addressed in the case Ruxley Electronics?
Quantifying damages and loss of amenity
The case set a precedent for how damages are assessed in construction disputes.
What constitutes illegitimate commercial pressure?
Commercial pressure is illegitimate if it is unlawful or involves a threat that a person knows they are not entitled to make.
How is a threatened breach in bad faith viewed in the context of illegitimate pressure?
A threatened breach in bad faith is more likely to be considered illegitimate than one made in good faith.
When is the threat of lawful action not considered illegitimate?
The threat of lawful action is not considered illegitimate in the absence of bad faith or unconscionable behavior.
Does good faith save an otherwise illegitimate threat?
Good faith will not generally save an otherwise illegitimate threat.
Can a threat of a lawful act in bad faith be illegitimate?
Probably, but the definitions of ‘bad faith’ and ‘unconscionable or reprehensible behavior’ need clarification.
Can a threat to breach a contract in good faith be legitimate?
Possibly.
What is the significance of the Times Travel case regarding lawful act duress?
The Times Travel case missed an opportunity to clarify the law by limiting duress to unlawful acts and threats.
How does Lord Hodge describe lawful act economic duress?
Lawful act economic duress must be understood within the framework of equity, which protects weaker parties in specific cases.
What is the role of inequality of bargaining power in commercial negotiations?
Inequality of bargaining power alone does not justify judicial intervention; it is for Parliament to regulate such imbalances.
What are the key components of the economic duress test?
- No realistic choice
- Time
- Other commitments
- Threat is illegitimate
- Distinguishing between normal bargaining pressure and abnormal abuse of power
- Causation
What does lack of practical choice mean in the context of economic duress?
It refers to a compulsion of the will that vitiates consent, interpreted as a lack of realistic choice.
What must illegitimate pressure involve?
Illegitimate pressure must involve a threat that is distinguished from normal commercial bargaining.
What is the relationship between duress and defective consent?
Duress requires that consent be overborne by compulsion for it to be established.
What does Lord Diplock explain about duress?
Duress does not mean the affected party was unaware of the contract’s terms, but that their consent was pressured in a way deemed illegitimate.
What is the threshold for recognizing duress in courts?
The courts set a high threshold for recognizing duress, intervening only in extreme cases of pressure.
What kind of fairness does the doctrine of economic duress promote?
- Procedural fairness
- Substantive fairness
What does procedural fairness refer to in the context of economic duress?
Procedural fairness refers to the conditions of choice, not the outcome.
What does substantive fairness concern in economic duress?
Substantive fairness concerns the substance of the bargain and the fairness of its terms.
What is undue influence?
Equitable doctrine involving exploitation or abuse of bargaining position.
What relationship does undue influence have with duress?
Both relate to coercion, but undue influence is an equitable doctrine.
How has undue influence been defined by courts?
It has never been precisely defined and involves unfair or improper conduct.
What are the two types of undue influence?
- Actual undue influence (class 1) * Presumed undue influence (class 2)
What characterizes actual undue influence?
Domination cases where something is actually done.
What must be established for presumed undue influence?
Relationship of influence, advantageous transaction, and not explicable on ordinary motives.
What are examples of relationships that create a presumption of undue influence?
- Parent and child * Trustee and beneficiary
What serves as prima facie evidence of undue influence?
A transaction that cannot be reasonably explained by the relationship.
What is a suspicious transaction example?
Unexpected gifts or transfers of property for free.
What must the defendant do regarding the presumption of undue influence?
Rebut the presumption by showing the claimant acted freely.
What demonstrates that a claimant acted of their own free will?
Receiving legal advice.
What concerns did Lord Nicholls express in Royal Bank of Scotland v. Etridge (2001)?
Quality of legal advice, particularly for vulnerable individuals.
Does contract law generally allow for interference in the fairness of contract terms?
No, it focuses on the freedom of contract.
What motivates legal intervention despite contract law’s rejection of substantive unfairness?
Procedural defects rather than direct assessment of fairness.
What is required for a transaction to be considered advantageous to the claimant?
It must not be explained on ordinary motives.
What is the significance of the Allcard v Skinner [1887] case in relation to undue influence?
It illustrates the concept of unfair or improper conduct leading to personal advantage.
Fill in the blank: Undue influence involves _______ or improper conduct.
[unfair]
Fill in the blank: Certain relationships create a presumption of _______.
[influence]
What is the case name associated with the principle of intention to create legal relations in social and domestic arrangements?
Balfour v Balfour [1919] KB 571
Which case rebutted the presumption of no intention to create legal relations in domestic arrangements?
Merrit v Merritt [1970] 1 WLR 1211
What is the case that established the objective approach to agreements?
RTS Flexible Systems Ltd v Molkerei Alois Muller GmbH [2010] UKSC 14
Fill in the blank: An invitation to treat can be exemplified by the case _______.
Partridge v Crittenden [1968] 1 WLR 1204
What case is known for establishing the rules regarding counter-offers?
Hyde v Wrench (1840) 3 Beav 344
Which case is significant for the acceptance of offers in contract law?
Entores Ltd v Miles Far East Corporation [1955] EWCA Civ 3
What is the case that illustrates revocation of an offer?
Routledge v Grant (1828) 4 Bing 653
Which case is associated with unilateral contracts?
Carlill v Carbolic Smoke Ball Co [1893] 1 QB 256
Name one case that addresses consideration in contract law.
Currie v. Misa (1875) L.R. to Exch. 153,162
Fill in the blank: Consideration must be ‘sufficient’ but need not be _______.
adequate
What is the significance of the case Re McArdle [1951] Ch 669?
Consideration must not be in the past
Which case is known for addressing the modification of promises?
Williams v Roffey Bros & Nicholls (Contractors) Ltd [1989] EWCA Civ 5
What is the principle established in Central London Property Trust Ltd v High Trees House Ltd [1947] KB 130?
Promissory estoppel
Which act regulates exemption clauses in contracts?
The Unfair Contract Terms Act (UCTA) 1977
What is the test for reasonableness under the UCTA?
Section 11
Fill in the blank: The Consumer Rights Act 2015 regulates _______ clauses.
exemption
What type of misrepresentation is illustrated by the case Derry v Peek (1889) 14 App Cas 337?
Fraudulent misrepresentation
Name the act that addresses negligent misrepresentation.
s2(1) Misrepresentation Act 1967
What is a remedy for misrepresentation involving the return to the original position?
Rescission
Fill in the blank: Damages for fraud fall under the tort of _______.
deceit
What is the tort of deceit?
Fraud
Involves misrepresentation that leads to a loss.
Which case is associated with the tort of deceit?
Doyle v Olby (Ironmongers) [1969] 2 QB 15
This case established key principles in deceit.
What type of misrepresentation is involved in Smith New Court Securities v Scrimgeour Vickers?
Fraudulent misrepresentation
A significant case in the context of securities fraud.
What is negligent misrepresentation?
A false statement made carelessly that leads to loss
It differs from fraudulent misrepresentation.
Which case is associated with negligent misrepresentation?
Royscot Trust Ltd v Rogerson [1991] 2 QB 297
This case illustrates the application of negligent misrepresentation.
What is innocent misrepresentation?
A false statement made without fault
It does not involve deceit or negligence.
Which case exemplifies innocent misrepresentation?
Salt v Stratstone Specialist Limited T/A Stratstone Cadillac Newcastle [2015] EWCA Civ 745
This case clarifies the boundaries of innocent misrepresentation.
What is duress to person?
Coercion involving threats to physical safety
It can invalidate consent in contracts.
Which case is related to duress to person?
Barton v Armstrong [1976] AC 104
This case demonstrates how duress can affect contractual agreements.
What is economic duress?
Coercion that leads to economic loss or detriment
It can make a contract voidable.
Which case is an example of economic duress?
The Siboen and The Sibotre [1976] 1 Lloyd’s Rep 293
This case discusses the concept of economic duress.
What is illegitimate pressure in contract law?
Pressure that deprives a party of free will to contract
It can render a contract voidable.
Which case illustrates illegitimate pressure?
CTN Cash and Carry Ltd v Gallagher Ltd [1994] 4 All ER 714
This case highlights the impact of illegitimate pressure on contracts.
What is causation in legal terms?
The relationship between conduct and the resulting harm
It is essential for establishing liability.
Which case is significant for understanding causation?
Huyton SA v Peter Cremer GmbH & Co [1999] 1 Lloyd’s Rep 620
This case addresses the principles of causation in tort law.
What is actual undue influence?
Direct coercion or pressure to influence a party’s decision
It can invalidate consent in agreements.
Which case exemplifies actual undue influence?
BCCI v Aboody [1990] QB 923
This case clarifies the concept of actual undue influence.
What is presumed undue influence?
Influence that is presumed due to the relationship between parties
It does not require direct evidence of coercion.
Which case is an example of presumed undue influence?
Allcard v Skinner (1887) 36 Ch D 145
This case establishes the presumption of undue influence in certain relationships.
What is unconscionability in contract law?
A situation where one party is unfairly disadvantaged in a contract
It can lead to the contract being deemed unenforceable.
Which case addresses the issue of unconscionability?
Fry v Lane (1888) 40 Ch D 312
This case discusses principles of unconscionability.
What is the expectation interest in damages?
The loss of what a party expected to receive from a contract
It is a primary measure of damages.
Which case is significant for the expectation interest?
Ruxley Electronics v Forsyth [1996] AC 344
This case addresses how expectation interest is calculated.
What is the reliance interest in damages?
Compensation for expenses incurred based on reliance on a contract
It focuses on losses suffered due to reliance on a promise.
Which case exemplifies reliance interest?
Anglia Television Ltd v Reed [1971] 3 All ER 69
This case demonstrates the reliance interest in damages.
What is non-pecuniary loss?
Loss that does not involve direct financial compensation
Examples include emotional distress or loss of enjoyment.
Which case addresses non-pecuniary loss?
Farley v Skinner [2001] UKHL 49
This case illustrates how non-pecuniary loss is treated in law.
What is remoteness in the context of damages?
Limiting liability to losses that are foreseeable
It ensures that defendants are not held liable for all consequences.
Which case is significant for understanding remoteness?
Hadley v Baxendale (1854) 9 Ex 341
This case establishes the foundational principles of remoteness.
What is mitigation in the context of damages?
The obligation to minimize losses after a breach
Parties must take reasonable steps to limit their damages.
Which case is significant for the principle of mitigation?
British Westinghouse Electric and Manufacturing Co v Underground Electric Rail Co [1912] AC 673
This case discusses the duty to mitigate damages.
What is contributory negligence?
A legal doctrine that reduces damages based on the plaintiff’s own fault
It assesses the degree to which a plaintiff’s actions contributed to their loss.
Which case illustrates contributory negligence?
Forsikringsaktieselskapet Vesta v Butcher [1986] 2 All ER 488
This case examines the principles of contributory negligence.
What must exist for an agreement to be legally binding?
Intention to create legal relations (ITCLR)
ITCLR must be judged objectively.
How are the intentions of the parties judged?
Objectively
What is the presumption regarding ITCLR in domestic or social arrangements?
Rebuttable presumption of no intention to create legal relations
Under what condition can the presumption of no ITCLR be rebutted?
When facts indicate there was an intention to create legal relations
What is the presumption regarding ITCLR in commercial arrangements?
Rebuttable presumption of intention to create legal relations
What may rebut the presumption of ITCLR in commercial arrangements?
Facts indicating no intention to create legal relations
How is the existence of an agreement determined?
By ascertaining the objective intentions of the parties
What is an invitation to treat?
A willingness to receive offers or enter into negotiations
What does an invitation to treat lack?
Intention to be bound and certainty
What is an offer?
An expression of willingness to be bound on certain terms
What is a counter-offer?
A rejection of the terms of an offer
What happens to the original offer when a counter-offer is made?
It is extinguished
What is acceptance in the context of contract formation?
Final and unqualified assent to the terms
What must acceptance be in response to?
An offer
What must acceptance do in relation to the offer?
Match the offer
What must be done with acceptance for it to be valid?
It must be communicated to the offeror
When must revocation take place?
Before acceptance
When is revocation effective?
Upon receipt
What is consideration in contract law?
Something of value given in exchange for a promise that turns it into a legally enforceable obligation
Why is consideration necessary in a contract?
It is necessary for a valid contract to be enforceable
What must consideration be recognized as?
Of value in the eyes of the law
What must consideration not be?
In the past
What happens if consideration is given before a promise is made?
It cannot be said to have been given in support of the promise, making the promise unenforceable
What is the requirement for consideration?
Must move from the promise
What is an exception to the past consideration rule?
If there was a prior request and an implied promise of remuneration
What is the pre-existing duty rule?
Performance of something already required or promised is generally held not to be valid consideration
Is a promise to pay more valid consideration?
No, performance of a pre-existing duty is not good consideration
What can support a promise?
Additional or fresh consideration
What is a practical benefit in relation to consideration?
A practical benefit to the promisor can support a promise
What happens if there is part-payment of a debt?
Part-payment of a debt is not good consideration
What can support a promise to discharge a debt?
Additional consideration or a new element given in exchange
What is required for a promise to discharge a debt to be supported by consideration?
Something different or a new element must be given in exchange
What is a practical benefit to the promisor?
It may support the finding of consideration
What is promissory estoppel?
A principle that may stop the promisor from going back on their promise
Under what condition can promissory estoppel be applied?
Where a promisee has acted in reliance on a promise
