Consideration

• What is consideration?


  Both parties to a contract will need to give something to the other by way of exchange
• What case shows a clear exchange between the parties

  Currie v Misa
• What is executed consideration?

  This is an act in return for a promise
• What Is executory consideration?

  A promise for a promise
• What is the first rule of consideration?

  Consideration need not be adequate but must be sufficient
• What case shows that consideration need not be adequate but must be sufficient?

  Thomas v Thomas
• What does consideration say about sufficiency?

  Consideration must be real and have some value
• What is the second rule of consideration?

  Past consideration is no consideration
• What case shows that past consideration is no consideration?

  Re McArdle
• What case shows an exception to the second rule?

  Re Casey’s Patent
• What is the first way an exception is allowed?

  An express or implied request by the promisor to the promised to perform a task
• What is the second way an exception is allowed?

  An implied promise inherent in the request that the promised will pay the promisee the promise for performing the task
• What is the third way an exception is allowed?

  The performance of the task
• What is the fourth way an exception is allowed?

  The payment from the promisor to the promisee is for that performance
• What is the third rule of consideration?

  Consideration must move from the promisee
• What case shows consideration must move from the promisee?

  Tweedle v Atkinson
• What is the fourth rule of consideration?

  Performing a pre existing duty can’t be the consideration for a new contract
• What is one example of a pre-existing duty?


  A duty imposed under a public duty to act, such as the police doing what they are required to do under public duty
• What is one example of a pre-existing duty?


  A duty imposed under an existing contract with the promisor, such as in a contract of employment
• What is one example of a pre-existing duty?

  A promise to make payment of an already existing debt such as repaying a loan
• What case shows a duty imposed under a public duty to act?

  Collins v Godefroy
• What case shows a duty imposed under an existing contract with the promisor?

  Stilk v Myrick
• What case shows a promise to make payment of an existing debt?

  Glasbrook Bros v Glamorgan council
• What is the fifth rule of consideration?

  A promise to accept part payment of an existing debt in place of the whole debt is not consideration
• What case shows the fifth rule of consideration?

  Pinnel’s case
• What case shows part payment of a debt is not valid consideration?

  Foakes v Beer
• What are the two exceptions that have developed following Pinnel’s Case?

  1 the principle of Accord and satisfaction

  2 the doctrine of promising Estoppel
• What is the principle of Accord and Satisfaction?

  Where an agreement is made to end the contract through other means of consideration
• What is the Doctrine of Promissory Estoppel?

  If one party agrees to vary the contract and the other party relies on this, the promisor can’t go back on this and they will be prevented from breaking the promise