Consideration

• Why is consideration essential for a valid contract?

  Because law requires a bargain, not a gift
• In the context of consideration, what is a detriment?

  A loss
• What does it mean for both parties to a contract to provide consideration?

  Each party must give something to each other
• What are the two types of consideration?

  • Executed consideration – consideration already carried out
  • Executory consideration – consideration yet to be performed
• Which case demonstrates executed vs executory consideration?

  Twiddle v Atkinson
• According to the rules of consideration, what must consideration be?

  Sufficient but need not be adequate
• What does it mean for consideration to be 'sufficient'?

  It must be real and have some value
• In Thomas v Thomas [1842], what was deemed sufficient consideration?

  A nominal rent of £1 per year
• In Thomas v Thomas [1842], why were the man's wishes insufficient?

  They were too vague
• In White v Bluett [1853], what promise was deemed not sufficient consideration?

  A promise not to complain
• What does it mean for consideration to be 'adequate'?

  There is some value
• What is the court's role regarding the fairness of a contract's value?

  It is not the court’s job to decide
• In Chappell v Nestlé [1960], what was held to be adequate consideration?

  Chocolate bar wrappers
• What happens if someone only does what they were already legally required to do?

  It is not good consideration
• What is a pre-existing duty?

  Something you are already legally required to do
• In Stilk v Myrick [1809], why was the captain's promise unenforceable?

  Sailors were already paid to sail
• What constitutes good consideration in addition to a pre-existing duty?

  Doing something extra
• If a party gains an extra benefit, can performing a pre-existing duty be good consideration?

  Yes, this can be good consideration
• In Hartley v Ponsonby [1857], what made the sailors' actions extra consideration?

  The journey became more dangerous
• In Williams v Roffey [1990], what extra benefit did Roffey gain?

  Avoiding a penalty under the contract
• What did the court hold about Williams' consideration in Williams v Roffey [1990]?

  He provided consideration
• According to In Re Selectmove, to which cases does Williams v Roffey apply?

  Provision of goods and services
• What is past consideration?

  Something already done when the agreement is made
• Why is past consideration not good consideration?

  It has no value
• In Re McArdle [1951], why could Mrs. McArdle not claim payment?

  The work was already finished
• Under what exception is past consideration valid?

  Implied promise to pay
• What does it mean for consideration to move from the promisee?

  The promisee must provide consideration
• In Lampleigh v Braithwaite [1615], why was the past consideration valid?

  Payment was implied all along
• What does privity of contract mean?

  Only parties can sue or be sued
• What principle is central to the idea that consideration must move from the promisee?

  Privity of contract
• In Tweddle v Atkinson [1861], why could the husband not receive the money?

  He had not provided consideration
• What does it mean for a contract to confer rights on someone?

  To give rights
• What does it mean for a contract to impose obligations on someone?

  To force obligations
• In Dunlop v Selfridge [1915], why could Dunlop not sue Selfridge?

  They were not party to the contract
• In Jackson v Horizon Holidays [1975], who was Mr. Jackson initially able to sue for?

  Himself
• What type of contracts is the Jackson v Horizon Holidays exception generally limited to?

  Holiday contracts
• How does agency act as an exception to privity?

  Principal bound by agent's contract
• In Wakefield v Duckworth [1915] who enters the contract on behalf of the company?

  Employee
• In Shanklin Pier Ltd v Detel Products [1951], how did Shanklin Pier provide consideration?

  Instructed painters to use Detel paint
• What are collateral contracts?

  A related or accompanying contract