Consideration

Question 1

The rules of consideration:

Answer 1

1. Consideration must be sufficient but not adequate
2. Consideration must not be given in the past
3. Performance of an existing legal or contractual duty is not good consideration
4. Consideration must move from the promisee

Question 2

Chappell v Nestle Co

Answer 2

consideration must be sufficient but need not be adequate

Question 3

Thomas v Thomas

Answer 3

the promisee must promise to do something in return for the promise of the other party.

Question 4

Jones v Padvatton

Answer 4

Even if you are giving up something of value, this can count as good consideration

Question 5

White v Bluett

Answer 5

love and affection is not good consideration

Question 6

Ward v Byham

Answer 6

UNLIKELY TO BE FOLLOWED

Lord Denning case where love and affection was good consideration

Question 7

Re Mcardle

Answer 7

Consideration must not be given in the past

Question 8

Exception to the past consideration rule: Implied promises

Answer 8

Where someone implies payment will be made before the other party acts but does not formally agree to this until after they have acted

Question 9

Two ways to prove an implied promise:

Answer 9

-Importance of the performance of the contract

-Commercial settings

Question 10

Lampleigh v Braithwait

Answer 10

Importance of the performance of the contract

Question 11

Re Casey’s Patents

Answer 11

Commercial settings

Question 12

Collins v Godefroy

Answer 12

Existing legal/public duty: where a person is only doing something they have to do under the law, this is not good consideration

Question 13

Glasbrook Bros v Glamorgan CC

Answer 13

Where someone goes beyond their pre-existing legal/public duty, this is good consideration

Question 14

Stilk v Myrick

Answer 14

Pre existing contractual duties are not good consideration

Question 15

Hartley v Ponsonby

Answer 15

Going beyond your pre-existing contractual duty is good consideration

Question 16

Williams v Roffey Brown

Answer 16

If there is a practical benefit to you performing the contract to D, this is good consideration

Question 17

Scotson v Pegg

Answer 17

Existing contractual duties with a third party can be good consideration for further agreements

Question 18

Tweddle v Atkinson

Answer 18

Only parties to a contract can enforce its terms