Contract Law: Consideration

Question 1

Rules of consideration

Answer 1

• consideration must be adequate
• must move from the promisee
• pre-existing duty/public duty amounting to good consideration
• past consideration does NOT amount

Question 2

What is consideration?

Answer 2

• Consideration is required from each party
• both parties must give something to eachother in exchange

Question 3

Consideration: Sufficiency

Answer 3

• need not be adequate but sufficient
• up to the parties
• must be real and have some value
CASE: Chappell v Nestle

Question 4

Must move from the promisee

Answer 4

• a person can not sue/be sued if consideration was not given in a contract
CASE: Tweedle v Atkinson

Question 5

Preformance of a pre-existing duty

Answer 5

• already legally required to do so, no consideration
CASE: Stilk v Myrick

Question 6

Preformance of a pre-existing duty: exceptions

Answer 6

• going beyond one’s legal duty (Ward v Byham)
• party gains extra benefit from duty (Williams v Roffey)

Question 7

preformance of a public duty

Answer 7

• does not normally amount to consideration (Collins v Godeyfroy)

Question 8

performance of a public duty: exceptions

Answer 8

• exceeding public duty amounts to consideration (Glassbrook v Glamorgan)

Question 9

past consideration

Answer 9

• where consideration has passed, it has no value (Re McArdle)

Question 10

past consideration: exceptions

Answer 10

• implied pay for a certain task (Lampleigh v Braithwaite)
• reward/payment was already expected (Stewart v Casey)