Test: Consideration (Contract)

Question 1

Define consideration

Answer 1

something of economic value being exchanged between the parties

Question 2

Rule 1

Answer 2

Must be sufficien; need not be adequate

Question 3

Wrappers sufficient consideration

Answer 3

Chappell v Nestle

Question 4

£1 sufficient consideration

Answer 4

Thomas v Thomas

Question 5

giving up job in America is sufficient consideration

Answer 5

Jones v Padvatton

Question 6

things arent consideration: not related, no reason to complain wasn’t giving anything up

Answer 6

White v Bluett

Question 7

Rule 2

Answer 7

Performance of an existing legal or contractual duty

Question 8

no consideration as it was obligation under law

Answer 8

Collins v Godefroy

Question 9

consideration as there was good consideration in the form of more than was needed

Answer 9

Glasbrook Bros v Glamorgan

Question 10

no consideration, had agreed to work for initial price

Answer 10

Stilk v Myrick

Question 11

Exception - something extra added/going beyond duty

Answer 11

Hartley v Ponsonby - consideration was extra work whihc included harder work and danger

Question 12

Exception - Practical benefit

Answer 12

William v Roffey Bros - consideration of extra benefits, money and finishing early

Question 13

Exception - Third party contracts

Answer 13

Scotson v Pegg - consideration, extra money for doing extra work

Question 14

Rule 3

Answer 14

part payment of a debt is not satisfaction of the whole

Question 15

if it is owed it is worth economic value, if it is debt then no

Answer 15

Pinnel’s case

Question 16

Exception - accord and satisfaction

Pinnel’s case, three ways a new agreement can satisfy the debt

Answer 16

Part payment is made earlier then agreed
payment is made by a different method
a gift that was originally agreed to is now involved

Question 17

Exception - Promissory estoppel

CLPT v high tree house, three conditions

Answer 17

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

Question 18

estoppel failed as S failed to make the payment as agreed

Answer 18

Re Selectmove

Question 19

estoppel failed as defendant had not behaved equitably

Answer 19

D and C Builders v Rees

Question 20

Rule 4

Answer 20

Consideration must not be given in the past

Question 21

consideration must be given in the present

Answer 21

Re Mcardle

Question 22

Exception - implied promises

Answer 22

Lampleigh v Braithwait - to do with a life

Re Caseys Patent - gaining company a lot more revenue

Question 23

Rule 5

Answer 23

consideration must move from the promisee

Question 24

only those involve, party of contract can sue/ be sued

Answer 24

Tweddle v Atkinson