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
4 of 18
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
6 of 18
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.
14 of 18
Exceptions to partial performance
Alternative consideration, early payment, payment by 3rd party, payment at alternative location, equitable doctrine of promissory estoppel
15 of 18
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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