consideration

Question 1

what is consideration?

Answer 1

Consideration consists either in the giving of a benefit or the suffering of a loss.
- the concept of exchange, asserting that a promisee can only enforce a promise if they have provided or committed something in return.

Question 2

What is meant by the rule that past consideration is no consideration?

Answer 2

past consideration is no consideration means that a party cannot use, as consideration, some act which he has already performed.

Question 3

What is meant by the rule that consideration must be sufficient but need not be adequate?

Answer 3

• rules means that consideration must be of some recognisable economic value (sufficient) but it does not need to be equal in value to the other partys consideration (adequate)
• means that any consideration must be material value

Question 4

is it good consideration to promise to perform an existing contractual duty?

Answer 4

Generally, not, the law generally requires additional consideration

Question 5

What is the rule in Pinnel’s Case?

Answer 5

Part payment of a debt is not good consideration

Question 6

in what circumstances can a past act amount to good consideration?

Answer 6

• A past act can amount to consideration for a promise if the act (1) was completed in response to a specific request or (2) the situation was one where payment would normally be expected.