contract

• What is the concept of consideration in contract law?

  Consideration is the concept of exchange or reciprocity.
• What must you show to enforce a promise made to you?

  You must show you agreed to provide something in return for that promise.
• According to Pollock, what is consideration?

  An act or forbearance of one party is the price for which the promise of the other is bought.
• What is executory consideration?

  • Promises made to perform something in the future
  • Occurs after the contract is formed
• What is executed consideration?

  • Consideration has already been performed at the time of contract formation
• What is a rule governing consideration regarding past actions?

  Consideration must not be past.
• Why is past consideration generally not valid?

  It cannot be used as consideration for a promise made after the act.
• What are the three necessary conditions for a prior act to be valid consideration?

  1. Act must have been done at the promisor's request
  2. Parties must have understood that the act was to be rewarded
  3. Payment must have been legally enforceable if promised in advance
• What does it mean for consideration to reflect parties' reasonable expectations?

  • Consideration should align with what parties expect in everyday transactions
  • Examples include car repairs or payment after a meal
• Who cannot bring an action to enforce a contract?

  The party who hasn’t provided consideration.
• What is the court's duty regarding the adequacy of consideration?

  The court does not assess the relative value of each party's contribution.
• What must consideration be in terms of value?

  Consideration must be sufficient and have some value in the eyes of the law.
• What are the components required for a binding variation of contract?

  • Agreement
  • Consideration
  • Intention
• What does executory consideration involve regarding existing obligations?

  • A party taking on an obligation
  • May arise from existing contractual obligations, public duties, or contracts with third parties
• Why is agreeing to do the same thing already obligated not considered good consideration?

  It is generally not good consideration for a new contract.
• What is an exception to the rule regarding existing obligations?

  • If the agreement exceeds existing obligations, then there is consideration.
• What must be shown to enforce a promise of extra payment?

  Consideration must be shown in return or a practical benefit must be received.
• What is factual consideration?

  • Acknowledges that nothing new is promised
  • The party receiving the promise still gains something from the reshaped deal
• What conditions must be met to establish factual consideration?

  1. A contract exists for work or goods
  2. The promisor doubts the completion of obligations
  3. An additional payment is promised for timely performance
  4. The promisor obtains a benefit or avoids a disbenefit
  5. The promise is not due to economic duress or fraud
• Does merely carrying out a public duty amount to sufficient consideration?

  No, it does not amount to sufficient consideration.
• Under what condition can police receive a reward for providing information?

  When providing information goes beyond their public duty.
• How can a party rely on a promise to do the same thing as consideration for a contract with a third party?

  • Performance of a pre-existing duty owed to a third party is regarded as sufficient consideration.
• Is paying a smaller sum than owed sufficient consideration to discharge a whole debt?

  No, it is not sufficient consideration.
• Why is a debtor still liable even if a creditor agrees to release them from further liability?

  Because they are offering to do something they are already obliged to do.
• What constitutes good consideration when introducing a new element into a payment?

  • New elements introduced at the creditor's request
  • Courts do not assess the value of the new element
• What happens when a creditor accepts part-payment from a third party?

  • The creditor cannot sue for the outstanding amount.
• What is the limitation of practical benefit in relation to accepting a lesser sum on a debt?

  It only applies to promises to pay more, not to accept less.
• What is required for a promise to accept less to be binding?

  It must provide a practical benefit without duress.
• What is the purpose of the promissory estoppel doctrine?

  • Allows a promise to be enforced despite lack of consideration
  • Protects the promisee who relied on the promise
• What must be shown for a promise to be binding in the context of reduced rent?

  The promise must be intended to create legal relations and acted upon.
• What are the parameters of the promissory estoppel doctrine?

  • Acts as a shield, not a sword (defense only)
  • Must be a clear promise affecting legal relations
  • Change of position in reliance on the promise is required
• Is detrimental reliance required for the promissory estoppel doctrine to apply?

  No, detrimental reliance is not required.
• How can a promisor resume strict legal rights?

  By waiting for the period to end or giving reasonable notice.
• What is required to establish intention to create legal relations?

  • Objective test based on actions of parties
  • Expressed or presumed intentions in circumstances
• What is the presumption regarding intention in commercial agreements?

  • There is a presumption of intention to create legal relations.
• What must a party do to rebut the presumption of intention in a commercial agreement?

  They must provide clear evidence to rebut the presumption.
• What does the assurance of depositing money into a bank demonstrate?

  It demonstrates intention to create legal relations.
• When is a promise intended to have legal effect?

  • When expected to gain commercial advantage
  • Language used can rebut this intention
• Does the phrase 'subject to contract' indicate intention to create legal relations?

  No, it does not indicate intention or binding agreement.
• What is the presumption regarding intention in social or domestic agreements?

  • There is a presumption that there is no intention to create legal relations.