Consideration

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  • Created by: Lucy
  • Created on: 17-07-15 18:51
Consideration
Both parties bringing something of value to contract
1 of 18
Present
Contracts must be executed, i.e. an act in return for a promise
2 of 18
Future
Executory, a promise in return for a promise
3 of 18
Past
NOT VALID
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RE:MCARDLE
Daughter in law,X, decorated Mrs Mcardle's house. subsequently, other relatives promised to reward X for her work when Mrs M died. no reward was paid. Held: X had not provided consideration for the promised reward.
5 of 18
Implied Promise to pay
e.g. hairdressers
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Sufficiency and adequacy of consideration also known as
Market rule
7 of 18
Consideration must be
need not adequate but must be sufficient
8 of 18
Thomas V Thomas
rent of £1 per annum was held to be sufficient consideration for the occupation of a family house.
9 of 18
Performance of existing contractual obligation
is not sufficient consideration for further reward
10 of 18
Collins V Godefroy
C had been subpoenaed to appear in defence of G. G promised to pay C £6 if C appeared in court. Held: C was required to appear so was providing no extra consideration by doing so.
11 of 18
Williams V Roffey brothers 1990
W agreed sub-contracted carpentry work for R, main contract refurbishing flats, fixed price £20K. Work ran late, causing R to fear he would be liable for penalty payments. R promised W £10K to ensure work completed on time. held: W enforce promise
12 of 18
Partial performance
Insufficient consideration and creditor will always be able to sue for balance outstanding.
13 of 18
Foakes V Beer 1884
B was entitled to payment of debt, on receipt of debt in full, was able to successfully petition for statutory interest.
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Exceptions to partial performance
Alternative consideration, early payment, payment by 3rd party, payment at alternative location, equitable doctrine of promissory estoppel
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Equitable doctrine of promissory estoppel
promise to not do something - can't go back on the promise.
16 of 18
Promissory estoppel is equitable remedy
principle of morality and fairness apply. Used as shield not sword.
17 of 18
D and C builders V rees
R owed £4K. R knew D was short of money + D faced insolvency. R offered D £3K as 'full + final settlement of debt' as D was desperate he accepted. Held: D was entitled to claim the balance as they had not voluntarily agreed to take less.
18 of 18

Other cards in this set

Card 2

Front

Contracts must be executed, i.e. an act in return for a promise

Back

Present

Card 3

Front

Executory, a promise in return for a promise

Back

Preview of the back of card 3

Card 4

Front

NOT VALID

Back

Preview of the back of card 4

Card 5

Front

Daughter in law,X, decorated Mrs Mcardle's house. subsequently, other relatives promised to reward X for her work when Mrs M died. no reward was paid. Held: X had not provided consideration for the promised reward.

Back

Preview of the back of card 5
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