Contract Law - Consideration - The rules governing consideration

In order to further determine validity of consideration, several rules have been established which will be covered in this quiz.

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  • Created by: Emma
  • Created on: 21-05-09 15:49
What rule does the leading case of Tweddle -v- Atkinson demonstrate in relation to consideration?
Consideration must move from the promisee
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What does this rule mean?
Consideration cannot place a burden on a third party
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However, what does s11 Married Women's Property Act 1882 allow?
A surviving spouse/child can sue on a life insurance policy even though he/she was not a party to the contract
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How did the case of Jackson -v- Horizon Holidays take this further?
Allows contracting party to sue for third party
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If the contract is silent on this matter, the contracting parties can deprive the third parties of their right to sue for a benefit until:
Assent to the term is communicated; the third party has relied on the term; the promisor can reasonably be expected to have forseen that the third party would rely on the term
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What is illustrated by the case of Re McArdle?
Consideration must not be past
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What is the exception to the past consideration rule?
Doctrine of implied assumpsit
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What does this exception mean?
A service that is normally paid for will normally result in the court assuming that the service was meant to be paid for and will enforce a later promise to pay
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What case illustrates this exception to past consideration?
Lampleigh -v- Braithwait
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What must consideration be?
Recognised by law as being of some benefit to the promisor or detriment to the promisee
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What happened in the case of White -v- Bluett?
A promise by a son to "cease his complaints" to his father was held to be insufficient consideration
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How was this stance not supported in the case of Ward -v- Byham?
A promise to keep a child happy was held to be good consideration
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Is a promise to perform a public duty imposed by law sufficient consideration?
No - consideration cannot consist of doing what the law already requires
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What are a couple of cases that illustrate this point?
Collins -v- Godefroy (supoena) and Glasbrook Bros -v- Glamorgan County Council (colliery)
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However, what happened in the case of Williams -v- Roffey Bros?
Additional payments to finish work on time were promised due a financial penalty that would be incurred - this was fresh consideration due to the benefit of not incurring a penalty
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In which case did this principal originate and then further applied?
Pinnel
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When would a promise not to enforce a full debt be enforceable?
Something different from what was already owed was given in return for the promise not to enforce
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Other cards in this set

Card 2

Front

What does this rule mean?

Back

Consideration cannot place a burden on a third party

Card 3

Front

However, what does s11 Married Women's Property Act 1882 allow?

Back

Preview of the front of card 3

Card 4

Front

How did the case of Jackson -v- Horizon Holidays take this further?

Back

Preview of the front of card 4

Card 5

Front

If the contract is silent on this matter, the contracting parties can deprive the third parties of their right to sue for a benefit until:

Back

Preview of the front of card 5
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