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13 Cards in this Set

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  • Back

What is consideration?

Sir Frederick Pollock defined consideration as "the price of the promise"

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)

Areas concerning the sufficiency of consideration

Past consideration

Performance of an existing duty

Part-payment of a debt

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)

Exceptions of past consideration

Requested performance exception = this has 3 requirements

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.

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

Performance of an existing public duty

Generally not good consideration (Collins v Godefroy)

Exception =

Exceeds the duty = additional benefit/detriment (Harris v Sheffield)

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)

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

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)

Part-payment of a debt

Not good consideration (Foakes v Beer)


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")

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)