Consideration

• Every contract must have consideration.
• The law requires a bargain, not a gift meaning that both parties must give something to eachother.
• There are two types of consideration

  1.. Executed consideration - an act in return for a promise

  2. executory contract - a promise for a promise
• 1. Consideration must be sufficient but need not be adequate (Thomas)
• Consideration must have value even if nominal (Chappel)
• A promise to stop complaining has no value (White) but going beyond existing legal duty is can be consideration (Ward).
• 2. Past consideration is not good consideration (McArdle)
• When the promisor makes an express/implied request for a task, there may be an implied understanding that this should be paid for (Lampleigh).
• 3. Consideration must move from the promisee, but need not flow to the promisor
• In bilateral contracts, both parties need to offer consideration.
• In unilateral contracts, one party makes the promise and the other does the act (Carlill v Carbolic Smoke Ball Co.)
• A party cant sue or be sued under a contract unless they have provided consideration (Tweddle).
• 4. Performing a pre-existing duty cannot be consideration for a new contract
• Collins - a public duty to act

  Stilk - Under an existing contract

  Glasbrook Brothers - an extra element can mean consideration

  Williams - a promise to pay more for an existing contract can be binding if it confers practical benefit
• 5. Part payment is not good consideration
• Part payment for a debt cannot be satisfaction for the whole (Pinnel)
• Principle of accord and satisfaction - parties can agree to something else 'satisfying' the whole debt