- Created by: Tiffany
- Created on: 28-11-11 16:10
Consideration is “the price for which the promise of the other is bought”
-Must pass between parties.
Existing duty not good consideration
- (Legal duty)
Except when something extra
- (Contractual Duty)
-Except when 3rd party interested
-Except when something extra is added
-why (evaluation)>it makes practical sense as the agency has skills and expertise.
Past consideration is not good consideration
-except where a service is requested
Consideration must not be adequate but must be sufficient
Sufficient = something
Something = tangible; value
The right to sue requires consideration
Part-payment is insufficient
-except in a different form.
a. Existing obligation not good consideration because…
i. (Contractual) so parties cannot escape obligations/demand extra.
ii. (Legal) so that people carry out public duty properly.
b. Why there are so many exceptions
i. A party should get paid for doing extra.
ii. & the other party should NOT be able to escape payment.
iii. Parties should pay for an extra benefit.
c. It stops parties gaining a benefit when they have not put anything into the contract.
d. Need not to be adequate…
i. Because it is up to the two parties to make their own decision.
e. Part-payment …
i. No certainty that anyone would pay their debt.
¨ Except: their different form
ii. Still paying
i. Party has not asked for it.
g. Some have argued that it is in need of reform as there is no statutory implementation.
h. Uncertainty as there is several exceptions so hard for lawyers. But it is flexible which allows the doctrine to avoid injustice. But judges can distinguish a precedent.