Consideration (Key Cases)

Front 1

Bolton v Madden

Back 1

In a bilateral contract, consideration must flow from the promisee; however this can be conferred upon a 3rd Party if so agreed

Front 2

Currie v Misa

Back 2

Valuable consideration may consist either a right/benefit accruing to one party or some detriment/loss undertaken by the other

Front 3

White v Bluett

Back 3

'refraining from complaining' was not valid consideration to discharge him from a promissory note for money

Front 4

Hamer v Sidway (USA)

Back 4

Promise to stop drinking and smocking was tangible enough to be consideration through forbearance

Front 5

Wade v Simeon

Back 5

If you know your claim is bad, forbearing your right to bring legal action is not consideration because you're not giving anything up

Front 6

Arrale v Costain Civil Engineering

Back 6

It is not consideration to refrain from a course of conduct which one never intended to pursue

Front 7

Cook v White

Back 7

An honest belief in a strong claim can be consideration if you forbear that right

Front 8

Roscorla v Thomas

Back 8

The promise of the horse being 'sound' came after the transaction so cannot be valid consideration

Front 9

Re McArdle

Back 9

Past consideration is not valid consideration; she already paid for the work before the promise of money so couldn't enforce it

Front 10

Lampeigh v Braithwaite

Back 10

Exception to the rule for past consideration; if the act is one you'd expect to be paid for then there may be an implied promise to be paid after the event

Front 11

Pao On v Lau Yui Long

Back 11

Past consideration is only valid if:

a) promisor requested it

b) it was understood that it was to be remunerated

Front 12

Thomas v Thomas

Back 12

Consideration need only be sufficient, but not adequate

This is to encourage market individualism and to respect freedom of contract

Front 13

Chappell v Nestle

Back 13

Courts do not question whether value is adequate or consider fairness so long as there is no duress

Front 14

Stilk v Myrick

Back 14

Promise to divide deserted wages was no consideration because sailors were only doing what they were already contractually obliged to do; there was no consideration

Front 15

Hartley v Ponsonby

Back 15

Offering sailors more money to stay was consideration because so many deserted that they were having to do more than what they were originally contracted to do

Front 16

NZ Shipping v Satterthwaite

Back 16

stevedores provided consideration for the promise by unloading the drill with care; this was additional consideration on top of their contractual liability

Front 17

Collins v Godefrey

Back 17

A promise to do something you are legally bound to do is not consideration

Front 18

Shadwell v Shadwell

Back 18

A pre-existing duty with a third party can amount to consideration because it involves the promisee taking on a risk of breaching 2 contracts

Front 19

Foakes v Beer

Back 19

Part payment of debt is not consideraiton; despite the factual benefit to the promisor

Front 20

Williams v Roffey Brothers

Back 20

Since the doctrine of economic duress, consideration can be found where there is a factual benefit to the promisor, or an avoidance of a desbenefit

Front 21

Combe v Combe

Back 21

The wife had given no consideration because her husband had not asked her to refrain from taking legal action; 'a gratuitous promise cannot be enforced unless it is supported by a deed'