Consideration 3B Flashcards
(19 cards)
What is the definition of Consideration?
Something of economic value being exchanged between the parties.
What is ‘good’ consideration?
Valid
What is the first rule of consideration?
It must be sufficient but need not be adequate (equal).
What 2 cases can you use with the first rule of consideration?
Chappell v Nestlé
Or
Thomas v Thomas
What rule is Chappell v Nestlé used for?
The first
What rule is Thomas v Thomas used for?
The first
Why doesn’t the court care about the consideration being equal?
Freedom of contract
Parties should be free to make their own decisions even if they are bad.
Also
It is sometimes difficult to determine value at a particular time.
What does Jones v Padvatton say?
Even giving up something of value (even if it is not given to the other party) can be consideration.
What case says Even giving up something of value (even if it is not given to the other party) can be consideration?
Jones v Padvatton
What does White v Bluett say?
Love and affection has no economic value.
What case says Love and affection has no economic value?
White v Bluett
What does Ward v Byham say?
Lord Denning’s mistake:
Looking after the daughter and keeping her happy did have economic value.
This case will NOT be followed in the future.
What case says Looking after the daughter and keeping her happy did have economic value?
Ward v Byham
What is the second rule of consideration?
It must not be given in the past.
When do you use the second rule of consideration?
Only when relevant.
Which case can be used in relation to the second rule of consideration?
Re McArdle
How can we evaluate Re McArdle?
There was clear evidence of an agreement as it had been put in writing so it would be reasonable to expect she would have a legal right to the money promised.
However, the siblings did not enter freely into the contract - they felt they had no choice due to emotional pressure. This goes against freedom of contract.
Which rule can Re McArdle be used for?
The second
What is the only exception to the past consideration rule?
Implied promises before consideration.
