Consideration

Question 1

What is the main rule in consideration?

Answer 1

Consideration must be sufficient but need not be adequate

Question 2

What is good consideration?

Answer 2

1. Existing contractual duty owed to a third party
2. Existing contractual duty owed to a party, if it confers a benefit
3. Past consideration, if the act was requested by the offeror and there was mutual understanding for remuneration

Question 3

What is bad consideration?

Answer 3

1. Illusory consideration
2. Existing contractual duty owed to a party
3. Existing legal duty
4. Past consideration
5. Part payment of debt (but see promissory estoppel)

Question 4

Can you bring an action under promissory estoppel?

Answer 4

No, PE can only be used as a shield and not a sword

Question 5

What are the requirements for promissory estoppel?

Answer 5

1. C had made a clear and unequivocal promise to not rely on their rights
2. D had altered their position in reliance of C’s promise
3. It is inequitable for C to go back on their promise