What must be given by each party to make a contract binding?
Consideration
Consideration must move from the promisee (Tweddle v Atkinson).
True or false: Consideration must be adequate and equal on each side.
FALSE
Consideration need not be adequate nor equal but must be sufficient (Thomas v Thomas).
What are the requirements for consideration to be valid?
- Must be sufficient
- Must be real and certain
- Must have real value
Examples include White v Bluett and Chappell v Nestle.
Is past consideration considered good consideration?
No
Past consideration is not good consideration (Roscorla v Thomas). Good consideration must be a promise for the future (Re McArdle).
Under what circumstances can past consideration be considered good?
- When a reward was expected in a commercial situation (Stewart v Casey)
- When the act was requested by the other party (Lampleigh v Braithwaite)
These exceptions allow past consideration to be valid under specific conditions.
What case established that performance of an existing duty cannot be consideration for a new contract?
Stilk v Myrick
This case illustrates that simply fulfilling a pre-existing obligation does not constitute valid consideration for a new agreement.
In which case is it established that an existing duty may become good consideration if it has become more difficult or different?
Hartley v Ponsonby
This case provides an exception where the nature of the duty changes significantly, allowing for new consideration.
What case indicates that promising to pay more for an existing duty can provide a ‘benefit’ or avoid a ‘detriment’ to the promisor?
Williams v Roffey Bros
This case highlights that additional payment for a pre-existing duty can constitute valid consideration if it benefits the promisor.
True or false: Performing an existing PUBLIC duty is considered good consideration unless it goes beyond what is normally required.
TRUE
In cases like Collins v Godefroy, merely performing a public duty does not count as consideration unless it exceeds normal expectations.
Which case demonstrates that exceeding a public duty can amount to good consideration for a promise of payment?
Glasbrook v Glamorgan, Ward v Byham
These cases show that going beyond the standard requirements of a public duty can provide valid consideration.
In the context of consideration, what is the significance of performing a duty owed to a third party?
Shadwell v Shadwell
This case establishes that fulfilling a duty to a third party can be considered good consideration.
Fill in the blank: Performing an existing duty is not good consideration unless it becomes more difficult or different, or if the promisor gains a _______.
benefit
This highlights the exceptions to the general rule regarding consideration.
Fill in the blank: Performing an existing duty is not good consideration unless it becomes more difficult or different, or if the promisor avoids a _______.
detriment
This emphasizes another exception to the rule of consideration.
