OTHER CONTRACT ESSENTIALS

Question 1

CONSIDERATION

Answer 1

An exchange of something of value from both parties.

Question 2

RULE 1

Answer 2

• Consideration must be sufficient but not adequate.
  [THOMAS V THOMAS]

Question 3

RULE 2

Answer 3

Past consideration is no consideration.
[Re McCardle}

Question 4

RULE 3

Answer 4

Consideration must move from promisee to promisor.

Question 5

RULE 4

Answer 5

Existing duty contracts are not consideration.
{ROFFEY BROS V WILLIAMS]

Question 6

PRIVITY

Answer 6

A contract can only affect those who are involved (signed). It cant give rights to anyone who isn’t involved.

Question 7

NTENTION TO CREATE LEGAL RELATIONS

Answer 7

• Must be a commercial or business arrangement
  [EDWARDS V SKYWAYS]

-Domestic settings do not count
[MERRIT V MERRIT] [BALFOUR V BALFOUR]