Consideration Flashcards

(21 cards)

1
Q

Define Consideration

A
  • The price of a promise, something of value exhcnaged between the parties.
  • Currie v Misa: A benefit to one party or a detriment to the other = valid consideration.
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2
Q

Explain Consideration must be Sufficient but not be Adequate

A
  • The law doesnt care if the deal is unfair, as long as something of legal vlaue is given
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3
Q

What case shows that as long as it has value even is small

A

Thomas v Thomas - £1 rent was enough. doesnt matter if its not a “good deal.”

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4
Q

What case shows that even trivial items count if real

A

Chappell v Nestlé - Chocolate wrappers were valid consideration

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5
Q

What case shows that a promise not to complain is not enough

A

White v Bluett - Son’s promise not to moan had no legal value

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6
Q

Explain Performing an Existing duty is not good consideration

A

Contractual Duty: If youre already cocntractually bound to do something, promising to do it again isnt new consideration
Public Duty: Doing somehting youre legally required to do (police duty) isnt good consideration

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7
Q

What case shows that a promise not to sue can be valid

A

Haigh v Brooks - Settling a legal claim can count as consideration

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8
Q

Which case shows that performing an existing contractual duty is not good consideration?

A

Stilk v Myrick - Sailors were promised extra pay to complete a voyage, but they were already contractually required to do so. They provided nothing new, so there was no valid consideration.

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9
Q

Which case shows that going beyond an existing contractual duty is good consideration?

A

Hartley v Pronsonby - So many crew members deserted that continuing the voyage invovled extra danger and work. Sailors went beyond original duties, so their promise was good consideration

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10
Q

What case shows that doing something you have a public, legal duty to do anyway isnt good consideration

A

Collins v Godefroy - Police officer promised money for attending Court, which he had to do anyway. No Contract.

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11
Q

Explain Past Consideration is not good consideration

A
  • If you do something before a promise is made, it cant count, unless it was done at the promisor’s request with an implied promise to pay.
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12
Q

What case shows something was already done before promise was made

A

Re McArdle - Home improvements done before promise to pay = no contract. It was already completed

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13
Q

What case shows an act being requested and then payment as good consideration

A

Lampleigh v Braithwaite - Man asked for help getting a pardon, then promised to pay. Act was requested = consideration valid.

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14
Q

Explain Consideration Must move from the Promisee

A
  • Only the person who provides consideration can enforce the contract. Third parties cant sue unless they gave something.
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15
Q

What case shows a Third party Husband attempting to sue even when giving no consideration

A

Tweddle v Atkinson - Husband tried to sue based on agreeement between two fathers. He gave no consideration, so couldnt enforce the promsie.

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16
Q

Explain Part Payment of Debt doesnt equal Good Consideration

A
  • If someone owes a fixed sum, paying part of it doesnt satisfy the whole unless you give something extra
17
Q

Which case shows that part payment of a debt is not good consideration for cancelling the full amount

A

Foakes v Beer - Foakes owed money and agreed to pay in instalments. Mrs Beer later asked for interest. The court said he gave no extra value (no new consideration), so she could still claim the interest.

18
Q

Explain Promissory Estoppel (Exception to Consideration)

A
  • If someone makes a clear promise, and the other party relies on it, it may be unfiar to let them go back on it, even without consideration
19
Q

Which case shows that promissory estoppel can stop a party from going back on a promise if it was relied on?

A

High Trees - Landlord reduce rent during WWII. Court said they were estopped from claiming full rent for war years as the tenant relied on the promise.

20
Q

Which case shows that estoppel won’t apply if the promisee acted unfairly?

A

D&C Builders v Rees - Mrs Rees owed money and pressured the builders to accept less.
The court said estoppel failed because she acted unfairly. You must come with clean hands to rely on estoppel.

21
Q

What is the Key rule for Promissory Estoppel

A

Estoppel is a shield not a sword, you use it as a defence, not to bring a claim (Hughes v MRC).