Theory-Consideration, Privity and Economic Duress

Question 1

What does consideration reflect the idea that the law is concerned with?

Answer 1

Bargains and NOT gifts

Question 2

1st way in which the law for consideration creates some problems.

Answer 2

1. Even things with nominal value are considered consideration by the courts (Chappell & Co. v Nestle) which might strike people as ridiculous.

Question 3

2nd way in which the law for consideration creates some problems.

Answer 3

2. Courts do not concern themselves with the adequacy of the consideration (Thomas v Thomas) which could lead to fraud or coercion dressed up as a fair contract.

Question 4

3rd way in which the law for consideration creates some problems.

Answer 4

3. Where consideration is not provided by one of the parties, the principle of promissory estoppel (Central London Property Trust Ltd v High Trees House Ltd) has been inconsistently applied in the court. (Re Selectmove)

Question 5

Problem with the rule of privity.

Answer 5

Rights of 3rd parties now have some protection through Contracts (Rights of Third Parties) Act 1999 but contracts often get around this through exclusion clauses.

Question 6

What does economic duress mitigate the possibility of?

Answer 6

Stronger parties abusing weaker parties through freedom of contract.

Question 7

Problem with economic duress.

Answer 7

Not always clear to people whether going down this route will be successful in court.