Consideration P3 Section B Flashcards
(31 cards)
what is consideration
consideration is something of economic value being exchanged between the parties
can be giving money, goods, services
what is the first rule of consideration
consideration must be sufficient, but needs to be adequate
what does adequate mean
must have equal economic value
what is the case for consideration not being of equally valuable but it not mattering
Chappell v Nestle Co
what is the case for giving something of economic value
Thomas v Thomas
what is the legal principle in Jones v Padvatton
even giving up something of value can be consideration
what did not count as consideration in White V Bluett
love and consideration does not count as economic value
what was the decision in Ward v Byham
the mother had a legal duty to look after her won child anyway which we wil see is another reason that consideration fails
Denning most likely felt bad for the mother and decided to ignore the law here - this case likely wont be followed in the future
what is the second rule of consideration
Consideration must not be given in the past
which case has the past consideration rule
Re McArdle
work was done before offer and acceptance
what is the exception to the past consideration rule
implied promises
what is implied promises
the exception to this rule is where someone implies payment will be made before the other party acts but does not formally agree to this until after they have acted
what are the 2 ways to prove an implied promise
work requested
work from employment
what are the 2 cases to prove an implied promise
Lampleigh v Braithwait
Re Caseys Patents
why did Lampleigh assume he would be awarded
Lampleigh had completed the service before agreement
however the court said that because the work had been requested it was implied some sort of reward would be given
why did L in Re Caseyes Patents assume he would be awarded
it would be reasonable for an employee to expect reward for their work e.g being paid
what is the third rule of consideration
Performance of an existing legal or contractual duty is not good consideration
what is the case for existing duty
Collins v Godefroy
what was the decision in Collins v Godefroy
the police officer had a legal obligation to appear in court already, so was giving nothing extra in return for the money
therefore this was not good consideration
what is the case for the exception of going beyond duty
Glasbrook Bros. v Glamorgan CC
what is the case for existing contractual duty
Stilk v Myrick
what was the decision in Stilk v Myrick
Stilk was only doing what he had already agreed to do and what he would be expected to do in case of emergency anyway
there was nothing extra added to work to act as new consideration for new promise
what is the case for exception 1 going beyond duty
Hartley v Ponsonby
how can Hartley v Ponsonby be distinguished from Stilk v Myrick
this time there would be drastically more work due to how many people deserted and the trip would be even more dangerous than before
