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13 Cards in this Set
- Front
- Back
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What is consideration? |
Sir Frederick Pollock defined consideration as "the price of the promise" |
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Rules of consideration |
1) Must be sufficient but need not be adequate (Thomas v Thomas) 2) Must have some economic value (White v Bluett) 3) Must move from the promisee (though this is not a strict requirement) |
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Areas concerning the sufficiency of consideration |
Past consideration Performance of an existing duty Part-payment of a debt |
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Past consideration |
Is no consideration, it must be given at the time of the contract as a contract is based on a mutual exchange of promises (Re McArdle) |
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Exceptions of past consideration |
Requested performance exception = this has 3 requirements |
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The requirements |
1) The act was done at the promisors request (Lampleigh v Braithwaite) 2) Both partied understood that there was to be a payment (Re Casey's patents) 3) The payment would have been enforceable had it been made before the act. |
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Situations in which there is performance of an existing duty |
1) Performance of an existing public duty 2) Performance of an existing duty owed to the same promisor 3) Performance of a duty owed to a third party |
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Performance of an existing public duty |
Generally not good consideration (Collins v Godefroy) Exception = Exceeds the duty = additional benefit/detriment (Harris v Sheffield) |
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Performance of an existing duty to the same promisor |
Generally not good consideration (Stilk v Myrick) Exceptions (There is an additional benefit/detriment) Exceeds existing duty (Hartley v Ponsonby) Practical benefit = Glidewell 5 criteria (Williams v Roffey) |
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Glidewell 5 |
1) The contract is for goods and /or services 2) Promisor has reason to doubt the performance of the promisee 3) Promisor promises a bonus 4) Promisor receives a practical benefit 5) No economic duress/fraud |
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Performance of a duty owed to a third party |
May be valid consideration as it gives the benefit of having a direct obligation to enforce (The Eurymedon) |
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Part-payment of a debt |
Not good consideration (Foakes v Beer) Exceptions Payment in kind, place (though may not be relevant in modern times) or earlier (Pinnel's case = "the gift of a horse, hawk or robe in satisfaction is good") |
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Re Selectmove (Court of Appeal) |
Limited Williams v Roffey to goods and/or services, excluding a practical benefit from applying to part-payment as the court considered themselves bound by Foakes v Beer (House of Lords) |
