CONTRACT LAW - Consideration, ICLR & capacity - INTRO

Question 1

What is consideration? (3)

Answer 1

Consideration is an act or forebearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable. Adopted by the House of Lords in DUNLOP V SELFRIDGE.

Question 2

What does consideration require? (2)

Answer 2

It requires an exchange between the parties - it is the price one party pays to make the other party’s promise enforceable.

Question 3

What is promissory estoppel? (4)

Answer 3

It is an equitable doctrine so it is at the court’s discretion. It allows a promise to accept less to be enforceable even where there is no consideration in sight. It is a defence to injustice where one party has given a promise that they won’t enforce their full rights against you, but they then go back on their word and insist on their full contractual rights.