introduction to consideration

Question 1

bilateral contract

Answer 1

consideration is provided by the exchange of promises.

Question 2

unilateral contract

Answer 2

consideration consist of an exchange of a promise or an act.

Question 3

Roscorla v Thomas 1842

Answer 3

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.

Question 4

Exception to past consideration

Answer 4

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.

Question 5

Casey’s Patent

Answer 5

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.

Question 6

Adequacy of consideration

Answer 6

considerations need not be adequate.

Question 7

Adequacy of consideration: Thomas v Thomas 1842

Answer 7

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.

Question 8

consideration must be sufficient

Answer 8

Must be real

Question 9

consideration must be sufficient: White v Bluett 1853

Answer 9

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.

Question 10

Public Duty

Answer 10

General rule - carrying out a public duty is imposed by the law is not sufficient for consideration.

Question 11

public duty: Collins v Godefory 1831

Answer 11

P subpoenaed to give evidence.
D had promised payment.
P could not enforce promise.
P already under a legal duty.

Question 12

Contractual duty owed to promisor

Answer 12

Traditional performance of an existing duty already owed to promisor does not amount to consideration.

Question 13

Contractual duty owed to promisor: Stalk v Meyrick 1809

Answer 13

Sailors desserted. 
Captain promised to divide their wages. 
Sailors stayed. 
When home captain didn't divide eagles. 
Held: no consideration.

Question 14

traditional exception

Answer 14

The promisee gives something more than he was obliged to under the original contract.

Question 15

traditional exception: Williams v Roffey bros 1990

Answer 15

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.