Test: Consideration (Contract) Flashcards
Define consideration
something of economic value being exchanged between the parties
Rule 1
Must be sufficien; need not be adequate
Wrappers sufficient consideration
Chappell v Nestle
£1 sufficient consideration
Thomas v Thomas
giving up job in America is sufficient consideration
Jones v Padvatton
things arent consideration: not related, no reason to complain wasn’t giving anything up
White v Bluett
Rule 2
Performance of an existing legal or contractual duty
no consideration as it was obligation under law
Collins v Godefroy
consideration as there was good consideration in the form of more than was needed
Glasbrook Bros v Glamorgan
no consideration, had agreed to work for initial price
Stilk v Myrick
Exception - something extra added/going beyond duty
Hartley v Ponsonby - consideration was extra work whihc included harder work and danger
Exception - Practical benefit
William v Roffey Bros - consideration of extra benefits, money and finishing early
Exception - Third party contracts
Scotson v Pegg - consideration, extra money for doing extra work
Rule 3
part payment of a debt is not satisfaction of the whole
if it is owed it is worth economic value, if it is debt then no
Pinnel’s case
Exception - accord and satisfaction
Pinnel’s case, three ways a new agreement can satisfy the debt
Part payment is made earlier then agreed
payment is made by a different method
a gift that was originally agreed to is now involved
Exception - Promissory estoppel
CLPT v high tree house, three conditions
the person owed the money promises to vary the terms of the debt
he knows the debtor is relying on them to stick to that promise
the debtor then does actually rely on this promise
estoppel failed as S failed to make the payment as agreed
Re Selectmove
estoppel failed as defendant had not behaved equitably
D and C Builders v Rees
Rule 4
Consideration must not be given in the past
consideration must be given in the present
Re Mcardle
Exception - implied promises
Lampleigh v Braithwait - to do with a life
Re Caseys Patent - gaining company a lot more revenue
Rule 5
consideration must move from the promisee
only those involve, party of contract can sue/ be sued
Tweddle v Atkinson
