Unit 2 - Consideration, Contractual Intention and Agency

Question 1

Does Consideration have to be a) Sufficient and b) adequate

Answer 1

A) it does have to be sufficient - this means the form it takes - in reality there aren’t many cases of denial
B) It doesn’t have to be adequate - this means the value doesn’t have to be any certain amount

Question 2

What is the general rule for Past Consideration and what are the 3 conditions that must be satisfied for something to be an exception to this?

Answer 2

general rule (roscorla and Thomas) - past consideration is not enforceable

1. act must be done at the promisors request (lamplight and Brathwait)
2. parties must have understood from the start that the act was to be rewarded in some way (Re Casey’s Patents)
3. Payment or conferment of other benefit must have been legally enforceable if it had not been in past

Question 3

What are the 3 types of existing duties that may be consideration ? ALSO what are the general rules and exceptions

Answer 3

Existing duty imposed by law
- NOT sufficient consideration, unless they EXCEED their public duty
Existing Contractual duty owed to a third party
- YES sufficient consideration
Existing contractual duty owed to the other party
- NOT sufficient as there is not additional benefit or detriment to that performing EXCEPT if you exceed the contractual obligation

Question 4

Is the Part payment for undisputed debts consideration ?

Answer 4

Pinnels and Foakes and Beer - party payment I NOT usually good consideration

common law EXCEPTION - if debtor can show they gave something different for the agreement to take less OR if its beneficial for the creditor to take the part payment EARLIER

ANOTHER CL Exception - part payment by a third party

Potentially PE could be a defence to a claim bought under F V B

Question 5

What are the conditions for Promissory Estoppel ?

Answer 5

1. Must be a clear promise to waive a strict legal right
2. promisee must act on promise
3. PE can only be used as a defence; cannot give rise to a cause of action
4. must be inequitable for the promisor to go back on their promise

Question 6

What is the doctrine of privity of contract ?

Answer 6

Requirement that to sue for reach of a particular promise you must have given consideration to the defaulting party for that promise, ness means that only a contracting party can sue for a breach of contract, or otherwise be liable for a breach.