Intention and consideration Flashcards
What is intention?
Intention is the intent of two parties to enter a contract, and it must look reasonable to an outsider (objective test).
Types of agreement
Domestic
Social
Commercial
Balfour v Balfour
Domestic Agreement case
Simpkins v Pays
Social Agreement case
Esso Petroleum v Commissioners of Custom & Excise
Commercial Agreement case
Domestic Agreement case
Balfour v Balfour
Social Agreement case
Simpkins v Pays
Commercial Agreement case
Esso Petroleum v Commissioners of Custom & Excise
Commercial Agreement case
Esso Petroleum v Commissioners of Custom & Excise
What is consideration?
Each party in a contract must give something in return.
Rules of consideration
Must be of some value but not equal value
Past consideration is no consideration
Person making the promise must provide consideration not the person agreeing
Must be of some value but not equal value
Chappell v Nestle
Past consideration is no consideration
Re McArdle
Person making promise must provide consideration
Tweedle v Atkinson
Chappell v Nestle
Must be of some value but not equal value
