Consideration

• Currie v Misa defined consideration as: Some right, interest, profit or benefit which is given to one party
• Consideration must be sufficient, but need not be adequate

  • Both parties must exchange something of value
  • The courts will not interfere if one party has made a bad bargain
  • Consideration must be real, which means it must exist - Chappel v Nestle
• Past consideration

  • This is not valid consideration
  • Consideration has no value if it has occurred before the agreement is made - Re McArdle
  • When there is an implied promise to pay, this can be an exception to past consideration - Re Casey's Patent
  • When the matter is important, this can be an exception to past consideration - Lampleigh v Braithwait
• Performing a pre-existing duty

  • If there is a pre-existing requirement for something to be done, this will not be valid consideration - Stilk v Myrick
  • If an extra element is required (e.g. doing extra work), then this is valid consideration - Hartley v Ponsonby
  • If one party allows the other to avoid a detriment, then it is likely they have provided an extra element meaning that consideration has been provided - Williams v Roffey