Week 8 - Consideration Flashcards
What’s consideration in regards to contract law?
Act or promise to do something of value or the price paid for a promise.
What’s the rule of consideration for simple contracts?
All of them must be supported by consideration from both parties.
What’s executed consideration?
Occurs at the time of buying - grocery shopping
What’s executory consideration?
Occurs after the time of agreement - restaurant booking
What’s past consideration?
When it happens before the agreement to receive the payment in made.
Ex - doing voluntary work then afterwards you’re promised money for doing the work, this promise is not legally binding.
What’s a contract?
An exchange of promises that are legally binding.
What’s an important rule for consideration?
Must be sufficient
- Monetary value
- Be capable consideration
Not adequate
- Promises don’t need to be of equal value
What’s the exception to general rule for past consideration?
Payment must be reasonably expected before doing the work
What’s the general rule of performing existing legal duties?
Exceeding your existing legal duties is valid consideration.
What’s the rule to create legal relations?
To make a binding contract both parties must enter a legal relationship.
Are agreements between friends and family legally binding?
No.
Presumption = No Intention To Be Legally Bound
Balfour V Balfour 1919
When are presumptions rebutted?
When there’s clear evidence that intentions exists.
Simpkin V Pays 1955 - Social agreements to split winnings.
