Consideration AO1 Flashcards
Define consideration casex1
Consideration is defined in Currie v Misa as “some right, interest, profit or benefit accruing to one party or some forbearance detriment, loss or responsibility given, suffered or undertaken by the other.
What is the rule of sufficiency and adequacy? casex1
Consideration must be sufficient but need not to be adequate, this means the consideration does not need to be of market value but does have to be of some nominal value (Thomas v Thomas).
What is the rule of love + affection? casex1
Love and affection has not been found to have nominal value (White v Bluett). However, there are some inconsistencies in the law and one judge found there was consideration when a mother was making her daughter happy.
Who must consideration move from? casex1
Consideration must move from the promisee, which means a person cannot sue or be sued under a contract unless they have provided consideration for it (Tweddle v Atkinson).
What is the rule with past consideration?
Past consideration is not good consideration, which means consideration will not be valid for a future payment if one side of the exchange has already taken place before the agreement had been made.
What is the exception to the rule of past consideration? casex1
There is an exception to this rule which is when there is an implied promise to pay for a particular task. For example, where there is a clear, implied prior understanding that claimant would probably expect some payment at the time the agreement was made (Re Casey’s Patent).
What case clarified the exception to past consideration?
The case of Lampleigh clarified this exception and held that is would be upheld if:
- at promisor’s request and the parties understand there will be some sort of reward/benefit to come.
What is the rule of performing pre-existing/ contractual duties?
Performing a pre-existing/ contractual duty is not good consideration for further payment, a pre-existing duty is something that the offeree is already legally required to do, for example obligations under other existing contracts.
What is the exception to the rule of performing pre-existing contractual duties?
There will be an exception to this rule if the offeree’s job becomes almost impossible.
What is the further development in the law? casex1
Williams v Roffery Bros have developed the law further and now also find consideration for the further payment if the claimant prevents the other party suffering a loss or detriment.
What is the rule when performing a public duty?
Performing a public duty is not good consideration for a further payment, as a public duty is something the offeree will already be legally required to do under their duty.
What is the exception to the rule of performing a public duty?
There will be an exception to this rule if the claimant does something that goes above and beyond what is already required by their contract then they can be entitled to further payment.
