Variation of Contract Flashcards
What are the essential elements required for a variation of contract to be legally binding?
A. Agreement, consideration, and intention to create legal relations
B. Offer, acceptance, and a new written document
C. Consent from a court
D. Mutual understanding and verbal consent
A. Agreement, consideration, and intention to create legal relations
Explanation: Just like when a contract is formed, a variation must have agreement, consideration, and intention to be legally bound
Ali owes Naomi £2,000. Naomi agrees to accept £1,000 as full payment. Ali pays the £1,000. Naomi then sues for the remaining £1,000. What is the legal position?
A. Naomi is bound by the new agreement
B. Naomi can recover the rest, unless Ali gave additional consideration
C. Ali is discharged because he paid on time
D. Naomi has waived her right by accepting any payment
B. Naomi can recover the rest, unless Ali gave additional consideration
Explanation: Under Foakes v Beer, part payment of a debt does not discharge the whole debt unless there is fresh consideration (like early payment or goods).
Which of the following is an example of executory consideration in a variation?
A. A promise to deliver goods in return for a new, later delivery date
B. A completed act done before a promise was made
C. A gift promised without return
D. A threat to cancel the contract
A. A promise to deliver goods in return for a new, later delivery date
Explanation: Executory consideration is where both sides promise to do something in the future, often seen in contract variations.
A painter agrees to finish decorating by Friday. The client promises £300 extra to speed things up. The painter finishes early and claims the extra money. Is the promise enforceable?
A. No, because the painter was already obliged to finish the work
B. Yes, because the variation was made under pressure
C. Yes, if finishing early gave a practical benefit to the client
D. No, unless agreed in writing
C. Yes, if finishing early gave a practical benefit to the client
Explanation: A practical benefit to the promisor (like avoiding delay) can make a promise to pay more enforceable, as in Williams v Roffey Bros.
Nina agrees to reduce the fee payable under a contract. The other party does not give anything in return. Can the variation be enforced?
A. Yes, because Nina agreed to the change
B. No, unless there is consideration or a valid estoppel
C. Yes, as long as the fee is less than £500
D. No, because variation is not allowed without court involvement
D. No, unless there is consideration or a valid estoppel
Explanation: A promise to accept less requires fresh consideration, or it may be enforceable only under promissory estoppel (as an equitable shield).
