Consideration

Question 1

1) Suffiency and Adequacy

Answer 1

The idea of consideration being adequate is not looked into by the courts (Thomas v Thomas) but they rather look at sufficiency of consideration. The consideration must be real and have some value. Real means the consideration must exist and it must have some value. (White v Bluett)

Question 2

3) Past consideration is no consideration

Answer 2

Past consideration is not valid consideration. This means consideration has no value if it is made before the agreement. (Re McArdle)

Question 3

4) Exceptions under Past consideration

Answer 3

Implied promise to pay - (Re Casey’s Patent)

When the matter is important - (Lampleigh v Braithwaite)

Question 4

5) Consideration must move from the promisee

Answer 4

This means a person cannot sue or be sued under a contract unless they provided consideration for it. (Tweedle v Atkinson)

Question 5

6) Performing a pre-existing duty

Answer 5

Performing a pre-existing duty is not considered consideration as it is already required by law to be done. This can be done in three ways:

1. A duty imposed under a public duty to act e.g police. (Collins v Godefroy)
2. A duty imoised under an existing contract with the promisor e.g. a contract of employment, merely doing one’s job. (Stilk v Myrick)

Question 6

7) Part-Payment of an Existing Debt is not valid consideration

Answer 6

This was classified in Pinnel’s case where the judege stated that a lesser sum on the day of the debt will not amount to consideration for the entire debt.

The person who is owed the money can claim the remainder of the money even if it was agreed that part-payment will clear the debt,

However, if there is an early payment or something additional given, it may be considered to be valid consideration.

(Foakes v Beer)