contract law

• What does consideration refer to in contract law?


  Consideration refers to something of value exchanged between parties to a contract.
• Why is consideration crucial in making a promise legally binding?


  It is a necessary element that ensures the promise is enforceable in court.
• What are some forms that consideration can take?


  Consideration can be money, goods, services, or a promise to do (or not do) something.
• What is required for a contract to be valid regarding consideration?


  Both parties must provide consideration for the contract to be valid.
• Does consideration need to be of equal value?


  No, consideration does not have to be of equal value, but it must have some value in the eyes of the law.
• If you mow a neighbor's lawn for £20, what is the consideration in this contract?


  The £20 is your consideration, and the lawn mowing service is your neighbor's consideration.
• What is the significance of consideration in distinguishing contracts from gifts?


  Consideration distinguishes contracts from gifts because contracts involve mutual exchange, while gifts are one-sided.
• Why is it important that consideration must be given in exchange for a promise?


  It shows that the parties intend to create legal relations and not just make a gift.
• What are the consequences of a promise made without consideration?


  The promise is generally not enforceable in court.
• What does the rule that consideration must be sufficient but need not be adequate mean?


  It means that consideration must have some legal value but does not need to be equal to what is received.
• What is an example of sufficient consideration that is not adequate?


  Selling a car worth £10,000 for £1 is an example of sufficient but not adequate consideration.
• What does it mean that consideration must not be past?


  It means that consideration must be given in exchange for the promise and not for something already done.
• Why is a promise to pay for work already completed not valid consideration?


  Because the work was done before the promise was made, making it past consideration.
• What does it mean that consideration must move from the promisee?


  It means that the person receiving the promise must provide the consideration.
• Why is third-party consideration generally not valid?


  Because the promise must be supported by consideration from the promisee, not a third party.
• What is Promissory Estoppel?


  Promissory Estoppel applies when one party relies on a promise to their detriment, making the promise enforceable without consideration.
• What are the conditions for Promissory Estoppel to apply?


  It must involve a clear promise, reliance by the promisee, detriment to the promisee, and inequity in not enforcing the promise.
• What are contracts under seal also known as?


  Contracts under seal are also known as deeds.
• Why are contracts under seal enforceable without consideration?


  Because they are formal documents that meet specific legal requirements.
• What is an example of a statutory exception to the doctrine of consideration?


  The Contracts (Rights of Third Parties) Act 1999 allows third parties to enforce contract terms in certain circumstances.
• What does the part payment of debt exception entail?


  In some cases, accepting part payment of a debt can discharge the entire debt.
• What is waiver in the context of consideration?


  Waiver is when a party voluntarily relinquishes their right to receive consideration, making the agreement enforceable.
• How does consideration help prevent frivolous claims in contract law?


  Consideration ensures that only serious agreements with mutual exchange are enforced, filtering out non-binding promises.
• Why is it important to understand the concept of consideration in contract law?


  Understanding consideration is crucial because it helps distinguish between enforceable contracts and mere promises or gifts.
• What are the key elements of promissory estoppel?


  Clear promise, intention for promise to be acted upon, actual reliance, and detriment to the promisee.
• What is the bargain theory in contract law?


  The bargain theory reflects the idea that contracts are based on bargained-for exchanges between parties.
• What is the general rule from Pinnel's Case regarding part payment of debt?


  Part payment of a debt is not good consideration for the whole debt.
• What are the exceptions to the rule from Pinnel's Case?


  Payment of a lesser sum before the due date, payment in a different form, and acceptance of a lesser sum in full settlement.
• What is the exception to the rule against past consideration?


  If the past act was done at the promisor's request with an understanding of future payment.
• What is the general rule regarding past consideration?


  Past consideration is generally not valid.
• What is the limited application of moral obligation in contract law?


  Moral obligation can serve as consideration mainly in cases of previously enforceable obligations that became unenforceable.
• What are the exceptions to the doctrine of consideration?

  1. Promissory Estoppel
  2. Contracts under seal (Deeds)
  3. Statutory exceptions
  4. Part payment of debt
  5. Waiver
  6. Past consideration in specific circumstances
  7. Moral obligation
• What is the principle established in Lampleigh v Braithwait (1615)?


  It establishes the concept of past consideration in specific circumstances.
• What are the potential issues in guarantees and indemnities regarding consideration?


  • Requirement for consideration in guarantee contracts
  • Statute of Frauds requirements for writing
• In a software development contract, what issue arises if a developer requests additional payment after the project has started?


  The lack of fresh consideration for the additional payment may affect enforceability.
• What is the consideration in subscription services?


  Regular payments in exchange for ongoing service.
• What might be required for contract modifications to be enforceable?


  Fresh consideration or application of promissory estoppel.
• What potential issues might arise in service agreements regarding consideration?


  Defining scope of work and quality standards, and payment terms.
• What is the consideration in a sale of goods transaction?


  Money in exchange for goods.
• In an employment contract, what is the consideration provided by the employee?


  The employee's work in exchange for salary and benefits.