enforceability of a contract - contract law Flashcards
0ffer plus acceptance equals what
agreement
what is consideration?
the same as a valid offer and acceptance a contract needs consideration. there is not a valid contract if there is consideration therefore it is an important as acceptance and the offer.
the same as valid offer and acceptance a contract needs consideration. there is not a valid contract if not consideration therefore it is an important as acceptance and the offer.
in this context what is consideration
essentially making a promise in exchange for something.
HINT - REMEBER CONSIDERATION AS THE THING THAT EACH PARTY IS EXCAHNAGED.
an example of consideration
if someone gives yu a choclate bar and you DONt pay for it this is merely a gift not a contract. if you paid for the choclate bar the promise to pay the money and the choclate bar is consideration from both parties.
Legal definition
outlined the case of Currie v misa (1875) = Some right,interest,profit or benefit accuring to one party or some forbearance, detriment loss or responability give, suffered or undertaken ny the otehr.
another legal defiition of consideration
an act of forbearance of the one party or the promise thereof, is the given for which the promise thus given for value is enforceable.
executed vs executory
when teh conisderation has been performed is is said to be executed
if it is yet to be performed is it executory
what is executed
when the consideration has been performed it is said ro be executed
what is executory
consideration yet to be peformed
a person agrees to paint a house for a jhomeowner in exchange for 1,000 and the paaymemt to be made sfter the work is done whta is this
executory
a person pays £500 in cash to buy a used car from a seller the seller immediatyly hands over the car
executed
what are the rules to consideration
1 - consideration need to not to be adequate but sufficient
2- past consideration is not good consideration
3- consideration must move from the promise
4- performing an exisiting duty cannot be the consideration for a new contract
5- A promise to accept part payment of a pre-existing debt in place of the whole debt is not consideration.
1.key case for consideration not be adequate but sufficient
Thomas v Thomas
Thomas v Thomas
before a man died he expressed a wish for his wife to remain in the house after he died. Wish was not stated in will. widow was charged a nominal rent of £1 per year. when they tried to evict her later they failed as consideration was provided by the £1 per year, meaning there was a legally binding contract.
legal principle -sufficient as consideration was provided by the £1 per year meaning there is a legally binding contract
extra information about Thomas V Thomas
- as you can see from the case Thomas v Thomas a house is more than than 31 per year but because it is sufficient there is something being passed from her to the house owners then this is upheld. the rent insufficient even though it is not adequate.
- remember phase - the law will not protect you from a bad bargain- example chappel & co nestle co ltd
chappell & co v nestle co Ltd
nestle said who ever sent in 3 chocolate bar wrappers would get a record or a song for a fraction of the price it usually is.
courts held that chocolate wrappers alone would have been valid consideration as something sufficient has been exchanged.
even though they where only chocolate wrappers, it is still of nominal value because customers may have bought more chocolate bars then they would have intended beforehand, benefiting nestle.
Ward v Byham
a militance agreement was made between mother and farther of a child. in exchange for payments from the farther the mother promised to keep the child well looked after and happy.
and let child decide who it wanted to live with
held there is consideration in this agreement. the requirement to keep the child happy and allowing it to choose where to live were enough to be valid consideration. was a benefit to the farther - having a happy child and allowing it to live with him if he wishes
there are some cases where services are not deemed to be sufficient
white v bluett
white v bluett
a son owed his farther money but the farther said he did not have to pay it if he stopped complaining about the way his estate was to be disrupted. after his farther passed his estate tried to make him pay back the loan.
held -he did not have to pay it back because the service was not sufficient because he had no right to complain in the first place.
suffieiency
- must be something of value
adequacy is not required. consideration does not need to be the market value of something.
- past consideration is not good consideration
do not confuse past consideration to executed consideration
past consideration occurs when the consideration has been provided before the agreement has been made
executed - consideration happens at the time the agreement being made
past consideration is not legally binding
past consideration
when the consideration has been provided before the agreement has been made
executed consideration
consideration happens at the time the agreement being made