Contract Law: Consideration (Case Law)

Front 1

Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915]

Back 1

"an act or forbearance of one party, or the promise thereof, if the price for which the promise of the other is bought"

Front 2

Re McArdle [1951]
+
Tweddle v Atkinson [1861]
+
Chappel & Co Ltd v Nestle [1959]

Back 2

Rules of consideration:
- Past consideration is no consideration
- Consideration must move from the promisee
- Consideration must be sufficient but need not be adequate

Front 3

Lampleigh v Brathwait [1615]

Back 3

It is implicit in some circumstances that service will be paid for:
- Service given at promisor's request
- Parties understood that remuneration was to follow
- Remuneration must have been legally enforceable if promised in advice

Front 4

Stilk v Myrick [1809]
but
Ward v Byham [1956]
and
Williams v Roffey Bros & Nicholls (Contractors) Ltd [1990]

Back 4

- There is no consideration in carrying out an existing duty
but
- There may be consideration if something extra is done
and
- There may be consideration if the other party obtains a "practical benefit"

Front 5

Pinnel's Case [1602]

Back 5

"payment of a lesser sum on the day in satisfaction of a greater cannot be satisfaction for the whole" (common law)

Front 6

Central London Property Trust Ltd v High Trees Housing Ltd [1947]

Back 6

Promissory estoppel

Front 7

Tool Metal Manufacturing Co Ltd v Tungsten Electric Co Ltd [1955]

Back 7

Promissory estoppel may only be suspensory in nature and the promisor may be able to end the estoppel by giving notice

Front 8

Shadwell v Shadwell [1860]

Back 8

The performance of an existing duty to a third party may be sufficient consideration