Contract Law - Consideration

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For an agreement to be binding there must be some detriment/benefit conferred by each party – “price of the promise”
Currie v Misa
1 of 25
Consideration must be sufficient, but need not be accurate
Thomas v Thomas
2 of 25
Consideration must have some economic value
White v Bluett
3 of 25
The economic value can be very minimal
Chappell & Co Ltd v Nestle Co Ltd
4 of 25
Consideration must move from the promisee
Not strictly true with modern developments
5 of 25
Past consideration = No consideration
Roscorla v Thomas
6 of 25
Past consideration = No considerate, harsh application
Re McArdle
7 of 25
Exception to the past consideration rule – Requested performance exception
Lampleigh v Braithwaite
8 of 25
Both parties would’ve understood that payment was to follow performance
Re Casey's Patents
9 of 25
The payment/conferment of a benefit would’ve been enforceable had it been promised in advance
Pao On v Lau Yiu Long
10 of 25
Performance of an existing public duty = not good consideration
Collins v Godefroy
11 of 25
However, exceeding an existing public duty can be good consideration
Ward v Byham
12 of 25
Performance of an existing contractual duty owed to the same promisor = not good consideration
Stilk v Myrick
13 of 25
However, exceeding the duty owed to the same promisor can count as good consideration
Hartley v Ponsonby
14 of 25
Performance of an existing contractual duty can be good consideration if the performance confers a practical benefit on the other party
Williams v Roffey Bros
15 of 25
Glidewell Criteria
Williams v Roffey Bros
16 of 25
Performance of a duty owed to a 3rd party can be good consideration
Shadwell v Shadwell
17 of 25
Performance of a duty owed to a 3rd party can be good consideration - Leading Case
The Eurymedon
18 of 25
A promise to perform a duty owed to a 3rd party can be good consideration
Pao On v Lau Yiu Long
19 of 25
Part payment of a debt is not good consideration to discharge a debt
Pinnel's Case
20 of 25
Part payment of a debt is not good consideration to discharge a debt - confirmed
Foakes v Beer
21 of 25
Above rule is harsh but provides protection from debtor exploiting financial position of the creditor
D&C Builders v Rees
22 of 25
If you provide something in addition to what was contracted for then this can be good consideration to discharge a debt- limited exception
Pinnel's Case
23 of 25
Payment in a different form or at a different time could be good consideration
Pinnel's Case
24 of 25
Part-payment of a debt does not confer a practical benefit onto the creditor
Re Selectmove
25 of 25

Other cards in this set

Card 2

Front

Consideration must be sufficient, but need not be accurate

Back

Thomas v Thomas

Card 3

Front

Consideration must have some economic value

Back

Preview of the front of card 3

Card 4

Front

The economic value can be very minimal

Back

Preview of the front of card 4

Card 5

Front

Consideration must move from the promisee

Back

Preview of the front of card 5
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