1: Consideration

Question 1

Currie v Misa

Answer 1

Consideration definition: ‘some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.’

Question 2

Thomas v Thomas

Answer 2

Consideration not need to be adequate

Question 3

Ward v Byham

Answer 3

but must be sufficient

Question 4

Roscorla v Thomas

Answer 4

Consideration must not be past consideration

Question 5

Lampleigh v Braithwaite

Answer 5

if the ‘past consideration’ was supplied in response to an express or implied request which carries an implication of payment, it can be consideration valid for a contract

Question 6

Tweddle v Atkinson

Answer 6

Consideration must move from the claimant

Question 7

Contracts (Rights of Third Parties) Act 1999

Answer 7

third parties to enforce contractual terms made in their favour, which was not possible under the previous general rule that only parties to a contract could enforce its terms.

Question 8

Stilk v Myrick

Answer 8

The general rule is that if a party is under an existing obligation to carry out something, they cannot use this promise as consideration for a new agreement

Question 9

What are the rules of consideration?

Answer 9

• Consideration need not be adequate but it must be sufficient
• Consideration must not be past consideration
• Consideration must move from the claimant
• Performance of existing obligations: an existing duty will not amount to valid consideration
• Consideration must move from the claimant
• Performance of existing obligations: an existing duty will not amount to valid consideration

Question 10

Part payment doesn’t generally count as consideration

Answer 10

Pinnels case