U2 Flashcards

1
Q

what is consideration?

A

The something in return, so in order to be able to hold the other party to a promise you must have agreed to provide something in return for that promise

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2
Q

does past consideration usually count as consideration?

A

not usually

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3
Q

what are the three types of existing duty

A
  1. Existing duty imposed by law
  2. Contractual obligation owed to a third party
  3. Contractual obligation owed to the other contracting party
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4
Q
A
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5
Q

what os the overall rule to do with part payment of undisputed debts?

A

part payment of debt is not usually consideration for a promise (Pinnel’s Case 1602)

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6
Q

what are some common law exceptions to part payment of undisputed debts?

A
  1. If the debtor can show they gave something different for the creditor’s agreement to accept less than the original sum [Pinnel’s Case 1602]
  2. If the part payment of debt is by a third party, then the principle that part payment is not good consideration does not apply
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7
Q

what is promissery estoppel

A

o A creditor may be prevented (estopped) from going back on a promise to accept part payment if in all the circumstances it would be fair to do so

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8
Q

what is the general idea of Promissery estoppel?

A

o If you have made a promise not to enforce your legal rights; and
o The promisee has relied on that promise even though they haven’t provided anything in return; then
o If you try and enforce your legal rights you will be estopped if it would be inequitable (unfair)

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9
Q

what are the 4 conditions for promissery estoppel to apply?

A
  1. There must be a promise to forgo legal right [eg accept reduced rent] which is intended to be acted upon by the other party
  2. The promisee must act on the promise [eg pay the reduced rent]
  3. Promissory estoppel doesn’t give rise to a cause of action, only used as a defence
  4. It must be inequitable or unjust for the promiser to go back on their promise and insist full legal rights
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10
Q

what is privity of contract?

A

-Only a contracting party can sue for breach of contract, or otherwise liable for breach (only the actual parties to a contract are bound by it, so have no rights and obligations by it)

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11
Q

what is agency

A

-Relationship which arises where someone (AGENT) acts on behalf of another and has power to affect THE PRINCIPAL’S legal position with regard to a third party

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12
Q
A
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