Consideration

Question 1

what does contract law require?

Answer 1

that a promise should fulfil certain formal criteria before it becomes binding

Question 2

what will the law not enforce?

Answer 2

gratuitous promises

Question 3

what is the exception to the rule of consideration?

Answer 3

contracts under seal

Question 4

what is the rationale behind contracts under seal?

Answer 4

if the parties went to the trouble of using such formalities, the courts should recognise the validity of their agreement and enforce the contract, despite the lack of consideration

Question 5

what is executory conideration?

Answer 5

a promise is given in return for another promise - neither side has completed its side of the bargain yet.

Question 6

what is executed consideration?

Answer 6

a promise is given in return for an act

Question 7

if consideration was given before the contract, what is this known as?

Answer 7

past consideration

Question 8

is past consideration valid?

Answer 8

no

Question 9

what must consideration be capable of being?

Answer 9

valued in monetary terms

Question 10

what must consideration have?

Answer 10

value

Question 11

insufficiency of consideration:

Answer 11

-where a public duty is imposed by law on the promisee
-where the promisee is bound by an existing contractual duty to the promisor