Consideration Flashcards
What is consideration
An act of one party is the price for which the promise of the other is bought.
Does consideration have to be cash?
No, can also take other forms.
What does it mean when the consideration has to be sufficient?
It must be real, tangible and have some inherent value
Ward v Byham
What does it mean if the consideration need not be adequate?
Courts aren’t interested if the agreement is good or bad. Therefore, if its not a fair deal, but was a freely made contract, courts will enforce it. Thomas v Thomas
What does consideration must not be past consideration mean?
Past consideration is not enforceable. A later promise to pay after an agreement is made for no promise to pay is not enforceable. Roscorla v Thomas
What is the exception to past consideration?
Lampleigh v Braithwaite - Where party has requested a service where there is reasonable implication that payment be made.
can third parties enforce contract if they provide no consideration?
No, only in certain cases
What cases can third party enforce?
In Tweddle v Atkinson case, if it conforms with 1999 Act.
When may a third party sue?
Contract expressly provides they may - s 1(1)(a)
or
Contract purports to confer a benefit on third party - s 1(1)(b)
Can an existing consideration also be consideration for another agreement?
No
Ward v Byham
Agreed to pay £1 to keep child happy, refused to pay. Happy was sufficient consideration.
Thomas v Thomas
Widow stay in home for £1. Sufficient consideration
Roscorla v Thomas
Sold horse, later said it wasn’t violent, it was. Consideration was in past and not related to statement.
Lampleigh v Braithwaite
Asked for king’s pardon, at their expense. Later agreed to pay which he didn’t do. Implicit that payment would be made.
Tweddle v Atkinson
2 people agreed to pay. One died before paying. Sued. The payee didn’t provide consideration so couldn’t enforce it.
