Consideration Flashcards
(10 cards)
Can practical benefit count as consideration for part-payment of a debt?
No – per Re Selectmove, the rule in Foakes v Beer still applies. Estoppel only applies if debtor has clean hands.
See D & C Builders v Rees: She could not rely on promissory estoppel.
Can a buyer rely on a seller’s post-sale statement to reject goods?
No – unless the statement was part of the bargain with consideration or amounts to a contractual misrepresentation made before the contract.
Can a contract variation be voided even if there’s practical benefit?
Yes, if the variation was agreed under economic duress (e.g. Atlas Express, Carillion). Practical benefit ? consent.
Must consideration be of equal value to be valid?
No – consideration must be sufficient (have some value), but need not be adequate (equal).
See Currie v Misa and Chappell & Co v Nestle.
Can a debtor rely on practical benefit as consideration for a rent reduction?
No – practical benefit does not apply to part-payment of a debt (Re Selectmove). They may rely on promissory estoppel if they act in good faith.
Can a buyer rely on a seller’s statement made after the sale to reject goods?
No – statements made after the contract cannot be part of the contract or a misrepresentation.
See consideration and timing rules.
If workers agree to accept half pay under promissory estoppel, can they later demand full pay back immediately?
No – the right to full pay is suspended and can only be revived with reasonable notice.
See High Trees principle.
When will a contract variation fail despite practical benefit?
If the variation was agreed to under economic duress (e.g., illegitimate threat, no practical choice), it is voidable even if a practical benefit was conferred.
What is the most effective way to make a variation binding when asking someone to do more work?
Provide fresh consideration – typically by offering more money. Formalities alone (e.g., restating the offer) are not enough.
Is a promise to pay or perform something in the future (executory consideration) sufficient to form a contract?
Yes – executory consideration is valid, and a binding contract is formed if all other elements (offer, acceptance, intention) are present.
