OTHER CONTRACT ESSENTIALS Flashcards
1
Q
CONSIDERATION
A
An exchange of something of value from both parties.
2
Q
RULE 1
A
- Consideration must be sufficient but not adequate.
[THOMAS V THOMAS]
3
Q
RULE 2
A
Past consideration is no consideration.
[Re McCardle}
4
Q
RULE 3
A
Consideration must move from promisee to promisor.
5
Q
RULE 4
A
Existing duty contracts are not consideration.
{ROFFEY BROS V WILLIAMS]
6
Q
PRIVITY
A
A contract can only affect those who are involved (signed). It cant give rights to anyone who isn’t involved.
7
Q
NTENTION TO CREATE LEGAL RELATIONS
A
- Must be a commercial or business arrangement
[EDWARDS V SKYWAYS]
-Domestic settings do not count
[MERRIT V MERRIT] [BALFOUR V BALFOUR]
