Consideration

Cards (8)

  • Once there’s agreement between parties there must also be consideration
  • Tweddle v Atkinson (Groom put nothing in case)

    Consideration must move from the promisee meaning a party must put something into the contract in order to be able to take benefit from the contract.
  • Chappell v Nestle (Chocolate wrappers)

    Consideration must be adequate meaning parties agree the value of things being exchanged is acceptable it doesn’t need to be equal.
  • Re McArdle (Work on bungalow case)

    Past consideration is a promise to pay for something that has already happened it is not legally consideration of contract.
  • Exceptions to past consideration
    Re Casey’s Patent - implied when he worked on patents he’d receive some payment
    Lampleigh v Braithwait - promisor made expressed request for a task so fee must’ve been implied
  • Exceptions to past consideration are applicable when:
    There’s an express / implied request to preform a task
    An implied promise in the request the promisor will pay a reasonable sum for preforming the task
    The performance of the task
  • Extra element required for new payment
    If promisor obtains a practical benefit and the promise wasn’t given under duress or by fraud it is enforceable (Williams v Roffey Bros - bonus payments to complete work on time).
  • Preforming a pre existing duty owed to the promisor cannot be the consideration for a new contract 

    Collins v Godefroy - public duty
    Stilk v Myrick - existing contractual duty
    Promise to make payment of existing debt