Revision Book Flashcards
What is the definition of consideration?
It was defined in Currie v Misa as either some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility, given, suffered or undertaken by the other.
What are the rules of consideration?
It must move from the promisee
It must not be past
It must be sufficient but need not be adequate
What is meant by saying that consideration must move from the promisee?
The person to whom the promise was made can only enforce that promise if they have provided the consideration for it (Tweddle v Atkinson - both fathers agreed to pay son money after marrying daughter, D’s father died before hand, son tried to take action on estate but had shown no consideration for the promise).
What is past consideration?
If you do an act and on the basis of that are made a promise in return of what you have done it is not enforceable (Re McArdle) Example, I wash windows and then you promise to pay £10. The promise was made after the act was done.
What is the exception to past consideration?
Pao On stated the following criteria:
Act must have been done at promisor’s request
Parties understood the act would be remunerated by payment or some other benefit at a later date
The payment or benefit must have been legally enforceable had it been promised in advance
What is the key case for consideration being sufficient but not adequate?
Thomas v Thomas - husband expressed that his wife should be able to remain in their home after his death. Executors allowed the wife to remain for £1 rent a year. As long as consideration has some value courts will not concern themselves with its adequacy.
What mugs consideration be in order to be sufficient in law?
Real
Tangible
Valuable (it must have some actual value)
Valuable, in terms of consideration, does it need to be monetary value?
No, Ward v Byham mothers promise to keep child well looked after and happy was sufficient as there is no legal duty to keep a child happy. Chappell v Nestle - wrappers part of the consideration.
Is performance of an existing duty sufficient consideration?
No (Collins v Godfroy- police promised money for attending court but had legal duty to do so anyway; Stilk v Myrick - already contractually bound to sail the ship).
What are the exceptions to performance of an existing contractual duty?
Where a public duty is exceeded
Contractual duty is exceeded
There is an existing contractual duty owed to a third party
Where the rules in Williams v Roffey apply
Where is a public duty exceeded?
Glassbrook Bros - promise to pay for additional police officers at mining strike. If one party gives more than they would have otherwise done, then this additional detriment is sufficient to render a promise enforceable.
When is a contractual duty exceeded?
Hartley v Posonby - almost half sailors abandoned voyage making continuing the journey dangerous. These conditions exceeded their existing contractual obligations therefore enforceable. When they do more than they originally bargained it is good consideration to support a fresh bargain.
Give a case example of an existing contractual duty owed to a third party?
Scotson v Pegg - S had contract with X to deliver coal to either X or where they wanted. X sold to P and asked for delivery there. P promised to unload coal at daily rate and did not fulfil promise. Delivery of coal to P was good consideration to enforce the promise.
What was the consideration in Williams v Roffey?
Completing the work on time. W fell behind schedule and looked like he would be unlikely to complete, R offered more money as they would have a penalty clause to pay for not meeting the deadline.
What did Glidewell say in Williams v Roffey with regards to consideration?
If A has entered a contract with B for goods in return for payment; before work is complete A thinks B will not finish on time and therefore promises an additional sum to perform on time and as a result A obtains a benefit or obviates a disbenefit; and the promise is not made under duress then the benefit to B is capable of being consideration for the promise.
