Flashcards in Consideration Deck (21):
What is consideration?
Something of value which causes a benefit and detriment to both parties
Types of consideration
What is past consideration?
When the act is performed before the promise or agreement is made
What is executed consideration?
When a promise is made by one of the parties (used for unilateral contracts)
What is executory consideration?
When both parties exchange promises (used in bilateral contracts)
Rules on consideration
1) consideration need be adequate not sufficient
2) consideration must pass from promisee to promisor
3) past consideration is bad consideration
4) if one has a previous obligation to act this is not consideration
5) part payment + consideration may discharge a whole payment
Case for consideration must pass from promisee to promisor
Tweddle v Atkinson
Facts of Tweddle v Atkinson
add these in too tired right now
Case related to 'consideration need be adequate not sufficient'
Thomas v Thomas
Facts of Thomas v Thomas
The husband of C expressed he wished for her to stay in the house after his death
She did so paying £1 rent a year
Executors tried to remove her from the house
Outcome of Thomas v Thomas
Executors tried to argue there had been a breach as no consideration was given
Court held the £1 rent would suffice. It was established that some consideration was enough, even if it was not equal
Case relating to past consideration...
Facts of Re McArdle
C lived with husband in his mothers house
Mother said the house would be given to children on her death
C spent her money repairing the house
Mother made children sign agreement to pay C back
When she died children got the house and didnt repay the money
Outcome of Re McArdle
C's claim was unsuccessful
She had completed the act before the agreement had been reached
Therefore this is past consideration and not accepted in court
Why is consideration not accepted if one already had a pre- existing duty?
Because consideration relates to the idea of detriment, one will not be at detriment if they were obliged to complete it
Case relating to pre-existing duty
Stilk v Myreck
Facts of Stilk v Myreck
Whilst sailing a ship 2 of the 11 crew member deserted
Crew demanded more money
Captain agreed but refused to pay on return
Outcome of Stilk v Myreck
The court stated that the sailors already had a contractual duty to sail the ship too and from therefore they had not provided consideration this the captain did not have to either
Exception to pre-existing duty rule (+case)
If the contractual duty is exceeded then this will be consideration - Hartley v Ponsby
Facts of Hartley v Ponsby
Very similarly to Myreck only this time 19/36 crew remained