Consideration

Question 1

Define consideration

Answer 1

Consideration is the value that each party puts into the contract.
Only those who put consideration into the contract have rights under it.

Question 2

Types of consideration

Answer 2

Executory consideration
Executed consideration

Question 3

Executory consideration

Answer 3

A promise for the future

Question 4

Executed consideration

Answer 4

Already carried out

Question 5

What are the cases you must always include?

Answer 5

White v Bluett
Chappell v Nestle

Question 6

White v Bluett

Answer 6

The consideration must be real - emotions are not good consideration.

Question 7

The consideration must be real - emotions are not good consideration.

Answer 7

White v Bluett

Question 8

Chappell v Nestle

Answer 8

Consideration must be sufficient meaning that there must be something of value exchanged between the parties. The courts cannot decide whether the deal was good or not.

Question 9

Consideration must be sufficient meaning that there must be something of value exchanged between the parties. The courts cannot decide whether the deal was good or not.

Answer 9

Chappell v NestleWh

Question 10

What are the 4 side rules? (name with case)

Answer 10

• Performance of an existing duty - Stilk v Myrick
  Side rules: Hartley v Ponsonby and Williams v Roffey
• Past Consideration - Re McArdle
  Side rule: Lamleigh v Braithwaite
• Part Payment of a debt - D&C Builders & Rees
• Privity of a contract - Tweddle v Atkinson
  Side rule - Contracts (Rights of Third Parties) Act 1999

Question 11

Performance of an existing duty case

Answer 11

Stilk v Myrick

Question 12

Stilk v Myrick

Answer 12

Both parties should fulfil their contractual duties.
If one party does not put more value into the contract, the other party will not be expected to also put more into the contract.

Question 13

Both parties should fulfil their contractual duties.
If one party does not put more value into the contract, the other party will not be expected to also put more into the contract.

Answer 13

Stilk v Myrick

Question 14

Hartley v Ponsonby

Answer 14

If you do something extra, then this is good consideration and you can ask for extra

Question 15

If you do something extra, then this is good consideration and you can ask for extra

Answer 15

Hartley v Ponsonby

Question 16

Williams v Roffey

Answer 16

If the party gains an extra benefit, then the other party is entitled to extra consideration under the contract

Question 17

If the party gains an extra benefit, then the other party is entitled to extra consideration under the contract

Answer 17

Williams v Roffey

Question 18

Past consideration case

Answer 18

Re McArdle

Question 19

Re McArdle

Answer 19

Past consideration is defined as something already done at the time the agreement is made. This means your thing of value is done before the agreement is reached. This is not good consideration

Question 20

Past consideration is defined as something already done at the time the agreement is made. This means your thing of value is done before the agreement is reached. This is not good consideration

Answer 20

Re McArdle

Question 21

Lampleigh v Braithwaite

Answer 21

Past consideration will be good consideration if there was an implied promise to pay at the time

Question 22

Past consideration will be good consideration if there was an implied promise to pay at the time

Answer 22

Lampleigh v Braithwaite

Question 23

D&C Builders & Rees

Answer 23

If you are owed money, you can claim all the money owed to you even if you promised to accept less

Question 24

Exceptions to part payment of a debt

Answer 24

1) If you accept anything other than money for the debt (even if it is not of equal value)
2) Repaying the debt at an earlier date
3) Repaying the debt at a different place on the due date at the request of the debtor
4) Promissory estoppel - If a promise is made to another party and they rely on it to their detriment, the party making the promises will be estopped from going back on their word

Question 25

Promissory estoppel rule

Answer 25

If a promise is made to another party and they rely on it to their detriment, the party making the promises will be estopped from going back on their word

Question 26

Meaning of promissory estoppel

Answer 26

Promissory estoppel stops someone from breaking a promise if another person reasonably relied on that promise and would suffer a loss (detriment) if the promise were broken, even if there wasn't a formal, signed contract.

Question 27

example of promissory estoppel

Answer 27

a landlord promises to accept half rent during hard times (like a war), the tenant relies on this and pays half, and the landlord can't later sue for the full original amount for that period,

Question 28

Privity of a contract case

Answer 28

Tweddle v Atkinson

Question 29

Tweddle v Atkinson

Answer 29

Only those who give consideration have rights under the contract

Question 30

Exception of privity of a contract (with act)

Answer 30

Contracts (Rights of Third Parties) Act 1999 - A person who is not a party to a contract can enforce the contract if he is named in it or if he gains a benefit from it.

Question 31

Contracts (Rights of Third Parties) Act 1999

Answer 31

A person who is not a party to a contract can enforce the contract if he is named in it or if he gains a benefit from it.

Question 32

Only those who give consideration have rights under the contract

Answer 32

Tweddle v Atkinson