Formation-Enforceability

Question 1

Chappell & Co Ltd v Nestle Co Ltd

Answer 1

Consideration must be sufficient, but it may need not be adequate.
(Copyright law: if it is an ordinary retail sale or not. If it is not, then pay royalty. To judge if it is an ordinary retail sale, see if the item has enough economic value.)

Question 2

Glassbrook v Glamorgan

Answer 2

Existing duty is not good consideration.
(Contract should be void for public policy reasons.)

Question 3

Re McArdle

Answer 3

Past consideration is generally not good consideration.

Question 4

Stilk v Myrick, Williams v Roffey

Answer 4

Existing contractual obligations generally not good consideration except practical benefit.

Question 5

High Trees

Answer 5

Estoppel as the general exception to consideration. The person has relied upon a promise to his detriment.

Question 6

Other Principle #1

Answer 6

Statutory gifts with a gift deed are an exception to consideration. (Gifts are not enforceable contracts.)

Question 7

Other Principle #2

Answer 7

A person must have capacity for contracts to be enforceable. To judge capacity, we need to check: under 18, permanent mental impairment, any specific requirement an area may put upon a person, intention to create legal relations.

Question 8

Other Principle #3

Answer 8

There exists voidable contract for fraud and incapacity.

Question 9

Other Principle #4

Answer 9

There must be certainty and completeness for a contract to be enforceable.