introduction to consideration Flashcards
bilateral contract
consideration is provided by the exchange of promises.
unilateral contract
consideration consist of an exchange of a promise or an act.
Roscorla v Thomas 1842
R brought a horse from T for £30.
After agreement had been reached T promised R horse sound and free.
Horse was not sound.
Court had to consider whether there was an enforceable promise.
Exception to past consideration
Lampleigh v Braithwait 1615.
B had killed a man.
B requested that L get him a pardon from the king.
Afterwards B promised L £100.
B did not pay.
Held: B was liable to pay - l’s service was done at request.
Casey’s Patent
Ownership of patent right wrote to Casey: in consideration of his service as practical manager - share of patents.
Transferred letter patent to Casey.
Q: had Casey provided consideration. Held: consideration was not past - part of same transaction.
Adequacy of consideration
considerations need not be adequate.
Adequacy of consideration: Thomas v Thomas 1842
D promised to give a cottage to the claimant.
In return she promised to pay £1 per year as rent and to maintain the property in good and tenantable repair.
D was bound by their promise.
Court was not concerned with the adequacy of the consideration.
consideration must be sufficient
Must be real
consideration must be sufficient: White v Bluett 1853
D borrowed money form his father - promissory note.
D made complaints.
Father promised to discharge D from obligations, if son would stop complaining.
Court held: no consideration.
Public Duty
General rule - carrying out a public duty is imposed by the law is not sufficient for consideration.
public duty: Collins v Godefory 1831
P subpoenaed to give evidence.
D had promised payment.
P could not enforce promise.
P already under a legal duty.
Contractual duty owed to promisor
Traditional performance of an existing duty already owed to promisor does not amount to consideration.
Contractual duty owed to promisor: Stalk v Meyrick 1809
Sailors desserted. Captain promised to divide their wages. Sailors stayed. When home captain didn't divide eagles. Held: no consideration.
traditional exception
The promisee gives something more than he was obliged to under the original contract.
traditional exception: Williams v Roffey bros 1990
RB contracted to refurbish 27 flats - penalty clause.
RB subcontracted carpenter work to W.
W under-priced the job.
RB promised to pay W more money.
W completes more flats - RB would not pay all the additional money.
Court held: there was consideration for the promise to pay additional money. consideration could be found in the form of a practical benefit.