Consideration

Question 1

Consideration

Answer 1

Essential for every contract and is based on an exchange of promises meaning the parties give each other something as an exchange meaning there should be a benefit and detriment in every contract: Currie

Question 2

Rules

Answer 2

A number of rules have developed that are applied to the principle of consideration. Firstly, there is no need for the consideration to be adequate, but it must be sufficient. The parties must decide whether they consider the exchange to be acceptable to them or sufficient. Must be real and have some rule: Chappell

Question 3

Past consideration

Answer 3

Past consideration is not consideration, meaning anything done before the agreement is made is not valid: Re McArdle.

Question 4

Exception

Answer 4

There is an exception to this rule when a party requests a service as the promise to pay is implied by the request

Question 5

Move from promisee

Answer 5

Consideration must move from the promisee meaning that a 3rd parties who has given no consideration is not part of the contract: Tweddle

Question 6

Existing duty

Answer 6

Performing an existing duty cannot usually be consideration, so people promised extra money or a bonus for doing something already covered by the contract cannot enforce the promise in court: Stilk.

Question 7

Additional or extra

Answer 7

If they are doing something additional or extra to the existing contract, then a new contract can be formed: Hartley