Existing Obligations Flashcards
Which of the following is generally NOT considered good consideration?
A. Going beyond a public duty
B. Completing an existing contractual duty with a practical benefit to the other party
C. Part payment of a debt with no new element
D. Performance of a contractual duty owed to a third party
C. Part payment of a debt with no new element
Explanation: Foakes v Beer confirmed that paying less than what is owed is not good consideration unless there is some new element added.
What was the key legal principle in Williams v Roffey Bros?
A. Promissory estoppel is enforceable without consideration
B. A practical benefit can amount to good consideration
C. Part payment of debt is always enforceable
D. Consideration must be adequate and sufficient
B. A practical benefit can amount to good consideration
Explanation: The court found that avoiding penalties and ensuring timely performance were practical benefits that constituted consideration.
Scenario: A builder contracted to finish a renovation is promised extra money after running into delays. They do not go beyond their original duties. Which principle applies?
A. Stilk v Myrick – no fresh consideration
B. England v Davidson – duty to the public
C. MWB v Rock – part-payment enforceable
D. The Eurymedon – third-party duty
A. Stilk v Myrick – no fresh consideration
Explanation: In Stilk v Myrick, doing what one is already contractually obliged to do was not valid consideration for a new promise.
Which of these scenarios provides sufficient consideration?
A. A tenant agrees to leave a property early
B. A debtor offers a smaller payment than owed
C. A subcontractor completes existing work
D. A police officer gives information to a private citizen
D. A police officer gives information to a private citizen
Explanation: In England v Davidson, giving information to a private individual was beyond the officer’s duty and therefore good consideration.
What does ‘factual consideration’ refer to in contract variation?
A. A benefit to the promisee recognised by law
B. A practical benefit received by the promisor
C. A formal written agreement
D. An obligation imposed by statute
B. A practical benefit received by the promisor
Explanation: In Williams v Roffey, factual consideration referred to practical benefits such as avoiding penalties and smoother performance.
C pays £600 to B in full satisfaction of A’s £1,000 debt. What is the likely legal result?
A. B can sue A for the balance
B. C can sue B for overpayment
C. A is still liable for the rest
D. B cannot sue A for the remaining balance
D. B cannot sue A for the remaining balance
Explanation: If a third party pays in full settlement, the creditor cannot go after the debtor for more (an exception to Foakes v Beer).
In which case was it held that performance of a duty owed to a third party is valid consideration?
A. Hartley v Ponsonby
B. Foakes v Beer
C. Stilk v Myrick
D. The Eurymedon
D. The Eurymedon
Explanation: In The Eurymedon, the Privy Council ruled that doing something you’re already contractually obliged to do for someone else can still be good consideration for a new promise.
Why was the promise of payment binding in Hartley v Ponsonby?
A. The crew threatened not to return
B. The journey became substantially more dangerous
C. The captain signed a bonus contract
D. The payment was made in advance
B. The journey became substantially more dangerous
Explanation: The sailors went beyond their existing duties due to extreme changes in voyage conditions, which amounted to fresh legal consideration.
