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

1. What rule does the leading case of Tweddle -v- Atkinson demonstrate in relation to consideration?

  • Consideration must not be past
  • Consideration must move from the promisee
  • Consideration must be sufficient
  • Consideration need not be adequate
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Other questions in this quiz

2. What does this rule mean?

  • Another party cannot sue for a third party
  • Consideration cannot place a burden on a third party
  • To enforce, and sue, a claimant needs to show that he supplied consideration for the promise and this was not provided by another person

3. 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
  • Contracts made between married couples are not binding regardless of whether any consideration was present
  • A married woman does not have to provide consideration to her husband

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

  • Only the lead name on holiday documentation can take action against the holiday company
  • Allows contracting party to sue for third party
  • Consideration does not need to be provided for a holiday

5. Under which Act can a third party enforce a term of the contract if it expressly provides for this or the term in question purports to confer a benefit on him?

  • Law Reform (Frustrated Contracts) Act 1943
  • Contracts (Rights of Third Parties) Act 1999
  • Unfair Contract Terms Act 1977
  • Contracts (Applicable Law) Act 1990

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