Consideration

• Consideration is what the parties put into the contract.
• There must be mutual benefit and loss, both must be giving and receiving something.
• Consideration is what each party contributes and they must contribute.
• Both parties must give something to the other, and it cannot be one-sided.

  Twiddle and Atkinson.
• Currie v Misa: "Consideration can consist of a right, interest, profit, benefit, detriment or forbearance"
• Consideration must be certain, tangible, between two parties, with value.
• White v Bluett: Certain, real, and tangible.
• Twiddle v Atkinson: Between two parties
• Chappell and Co v Nestle LTD: Having some value
• Ward v Bytham: A promise to do something can be good consideration.
• Consideration must move from the promise, it must be given in exchange for something, so there must be an element of giving. If someone fails to give, then there is an issue.
• To look at consideration, we must also look at the nature of relationship between the parties.

  1. Existing with the same party
  2. Existing with a different party
• When existing consideration between the same parties, a person must show that they have gone above and beyond what was originally agreed in the contract.
• Existing consideration cases:

  Stilk v Myrich

  Hartley v Ponsonby

  Glasbrook v Bear

  Williams v Roffeybear
• Using the same consideration to satisfy multiple different contracts is fine. You can do one action or one service for different people.
• Shadwell v Shadwell: Existing consideration with a different party.
• Consideration needs to be sufficient and it's up to both parties to determine what is the right value for them.
• Chappell & Co v Nestle LTD: Consideration must be sufficient.
• The law is very clear that past consideration is not good consideration.
• It should be clear that both parties are expecting something.
• if it's just one sided, it's a gift. A gift is not legally enforceable.
• McArdle: Past consideration is invalid.
• "Executed consideration" is a promise that's made at the time but it will be done in the future.

  Carbolic Smoke Ball
• The only valid consideration for a debt is repayment in full of that debt, and that includes any interest under contract law.