Rules of consideration: Past consideration is not good consideration- cards checked Flashcards
What case outlines that past consideration is not good consideration?
-Re Mcardle
What case outlines the exception for past consideration is not good consideration?
Lampleigh V Braithwaite
What does past consideration is not good consideration mean?
-If a person has performed an act before he is made a promise by another person…
- he cannot use that as consideration given in exchange for that promise
E.g- Tom promises to pay Cindy £25 after Cindy has already found his wallet, is legally unenforceable
Re Mcardle
-family home in parents will, child A made improvements to home after she did it made child B sign document promising they would pay for improvements.
-NOT enforceable- consideration past + done before promise- so could not be in return for promise.
What is the exception to past consideration is not good consideration?
–if the act was performed at the promisors request and it was implied all along the goods would be paid for.
Lampleigh V Braithwaite
-Braithwaite killed man- got other man to get pardon from king for him- got pardon and Braithwaite promised to pay him £100 (L).
-Courts held it as consideration as it was directly liked to earlier request and implied all along.