Formation- consideration

Question 1

what is consideration

Answer 1

the price given in exchange for goods or services under a contract

Question 2

what did it state in dunlop v slefridge

Answer 2

each party must give something in return for what is gained by the other

Question 3

what must consideration have

Answer 3

real, tangible value (Hamer v sidway)

Question 4

what is rule 1

Answer 4

consideration need not be adequate but must be sufficient (have some value)
- regardless of the sum being small, it is still valid consideration (Thomas v Thomas)

Question 5

what is rule 2

Answer 5

past consideration isn’t consideration
- the consideration must be given in return for the promise (Mcardle)

Question 6

what is rule 3

Answer 6

the consideration must come from the promisee (tweedle v Atkinson)
-exceptions for holidays/insurance

Question 7

what is rule 4

Answer 7

performing a existing duty can’t be consideration for a new contract
1. public duty
2. contractual duty
3. a promise to make a payment

Question 8

what is rule 5

Answer 8

a promise to accept a part payment of a pre existing debt in place of the whole debt isn’t consideration (Foakes v beer)