formation of contract: consideration Flashcards
what does valid contract contain?
contains consideration
means that both parties give something
case of currie v most defined consideration as ‘some right interest profit or benefit’ which is given to one party.
consideration must be sufficient but need not be adequate, what does this mean?
courts will ensure both parties have exchanged something of value courts will not interfere if one party has made a bad bargain
consideration must be real
what was held in Thomas v Thomas?
though amount was nominal, this was valid consideration
will courts find consideration if whats being exchanged has some value?
yes
what was held in chappel v nestle
wrappers were valid consideration as they had economic value.
what was held in white v bluett
stopping complaining isn’t consideration isn’t consideration, son had to pay his debt fathers natural love and affection wasn’t valid consideration
what was held in ward v Bytham
valid consideration between mother and father, mother provided consideration by providing natural love and affection for children so father has to pay
what is past consideration?
past consideration isn’t valid consideration
consideration has no value if it has occurred before agreement is made
what is held in re Mcardle
past consideration has no value, money couldn’t be recovered
what are the exceptions under past consideration
when there is an implied promise to pay (re Caseys patent) or when matter is important (lampleigh v braithwait)
what was held in Re Caseys patent
it was implied from when he began the work he would receive some kind of payment, was an exception to the rule of past consideration.
what was held in lampleigh v braithwait
matter important fair for lampleigh to presume he would be paid, wasn’t past consideration, braithwait had to pay
what is performing a pre existing duty
if theres already a pre existing requirement to be done, will not be valid consideration (collins v godefroy)
what was held in stilk v myrick
no consideration was provided by crew members agreed to act in emergencies so this was a pre - existing duty.
whats the rule around extra element
if theres an extra element is required, theres valid consideration
