Consideration Flashcards Preview

Contract Law > Consideration > Flashcards

Flashcards in Consideration Deck (20):
1

Currie v Misa definition of Consideration:

Some right, interest, profit, or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given or undertaken by another.

2

Dunlop v Selfridge definition of Consideration:

The price for which the promise of the other (party) is bought.

3

3 Rules of Consideration:

- Must move from the promisee.
- Must not be past.
- Must be sufficient but need not be adequate.

4

Consideration must not be past:

A benefit given in the past is not consideration for a present promise,

Relevant Case: Re McArdle

5

Criteria for exception to the rule that consideration must not be past:

- Act must be done at promisor's request.
- Both parties acknowledge that the act would be remunerated by payment or other benefit.
- Payment must be legally enforceable had it been promised in advance.

6

Case that contradicts the rule that consideration must not be past:

Lampliegh v Braithwaite

7

Consideration must move from the promisee:

Third parties are prohibited from suing for the carrying out of promises made by the parties to the contract.

Tweddle v Atkinson

8

Consideration must be sufficient but need not be adequate:

As long as consideration has some value, the courts will not concern themselves with adequacy.

Thomas v Thomas

9

What about the performance of an existing duty?

Renders consideration insufficient.

10

Consideration must be:

Real
Tangible
Valuable

White v Bluett

11

Executory Consideration:

Promises are exchanged for future acts

12

Executed Consideration:

An act is performed to fulfill a promise to another

13

Promisee:

Person to whom the promise is made.

14

Promisor:

Person to who is making the promise.

15

What is the equitable remedy of Promissory Estoppel?

Essentially stops parties from attempting to not enforce their contractual duties. It is a shield not a sword.

Central London Property v High Trees House Ltd

16

Lampliegh v Braithwaite

The defendant had killed a man and was due to be hung for murder. He promised another £100 in exchange for securing a pardon.

It was held:

Even though it would constitute past consideration, it was preceded by a request from the defendant, making it valid.

17

White v Bluett

Promising not to complain is not consideration and ultimately intangible.

18

Re McArdle

McArdle carried out various repairs on a house. After she completed the work, her siblings promised to pay her but never did.

It was held:

Promise to make payment was invalid as it came after the consideration had been performed.

19

Thomas v Thomas

After he died, Mr Thomas gave his wife the house for £1 per year.

It was held:

The £1 rent was good consideration. Even though it was not economically adequate, it was sufficient.

20

Tweddle v Atkinson

Father of bride and Father of the groom agreed to pay couple a sum of money. Both died before that could happen. The groom made a claim.

It was held:

Groom could not make a claim as he was not party to the arrangement.