Consideration

Question 1

What is the definition of consideration in contract law?

Answer 1

Exchanging something of economic value as part of a contractual agreement

Consideration is essential for a contract to be enforceable.

Question 2

What is the first rule of consideration?

Answer 2

Consideration must be sufficient, not adequate

This means that the value exchanged must be enough to support the promise.

Question 3

What is the second rule of consideration?

Answer 3

Consideration must not be given in the past

Past consideration cannot be used to support a current contract.

Question 4

What is the third rule of consideration?

Answer 4

Performance of an existing legal or contractual duty is not consideration

This means fulfilling a duty that one is already obligated to do cannot count as new consideration.

Question 5

What is the fourth rule of consideration?

Answer 5

Consideration must move from the promisee

This indicates that only the parties involved in the contract can provide consideration.

Question 6

What case illustrates that consideration must be sufficient, not adequate?

Answer 6

Chappell v Nestlé

In this case, wrappers exchanged for a voucher were deemed sufficient consideration.

Question 7

What case demonstrates that something benefiting the other party is considered valid consideration?

Answer 7

Thomas v Thomas

In this case, the widow’s eviction from the house showcased that consideration can be something that benefits the other party.

Question 8

What case shows that giving up something of value = ?

Answer 8

Consideration

Jones v Padvatton - daughter gave up life in USA

Question 9

In White v Bluett, what was determined about love and affection as consideration?

Answer 9

Love and affection is NOT good consideration

This case established that emotional support or familial love does not meet the legal requirements for consideration in contracts.

Question 10

What was the significance of the case Ward v Byham regarding consideration?

Answer 10

Mother’s care for child was considered good consideration

This case serves as an exception to the general rule that love and affection do not constitute valid consideration.

Question 11

What is the Second rule regarding consideration?

Answer 11

Consideration must NOT be given in the past

This principle indicates that any consideration must be contemporaneous with the agreement.

Question 12

What was the outcome in Re McArdle regarding consideration?

Answer 12

Agreement made after work has been done is not good consideration

This case illustrates that work done prior to a contract cannot be used as consideration for that contract.

Question 13

What are the exceptions to the rule against past consideration?

Answer 13

Implied promises

Certain situations may allow for consideration to be recognized even if it was given in the past, particularly in commercial contexts.

Question 14

What was the significance of Lampleigh v Braithwait in terms of consideration?

Answer 14

EXCEPTION #1

past act can be good consideration where it was done at the promisor’s request and both parties understood payment would follow - the later promise simply confirms this implied expectation.

Question 15

What was determined in Re Casey’s Patents regarding consideration?

Answer 15

Consideration can be given in the past in commercial settings
EXCEPTION #2

This case confirmed that in certain commercial contexts, past consideration may be acceptable under specific conditions.

Question 16

What is the 3rd rule in consideration

Answer 16

Performance of an existing legal or contractual duty is NOT good consideration

Question 17

Which case established that fulfilling legal duty is not good consideration?

Answer 17

Collins v Godefroy.

Question 18

In Stilk v Myrick, what was the context of the case?

Answer 18

Two pirates abandoned ship, and sailors were fulfilling their contractual duty.

Question 19

What is the significance of the case Stilk v Myrick?

Answer 19

It established that performing a contractual duty does not constitute good consideration.

Question 20

What is the first exception to the rule that performance of an existing duty is not good consideration?

Answer 20

Going beyond duty. (Legal duty)

Question 21

Which case exemplifies the first exception of going beyond duty? (Legal duty

Answer 21

Glasbrook Bros v GCC

Question 22

What did the police officers do in Glasbrook Bros v GCC that constituted good consideration?

Answer 22

They stayed on-site for days, going beyond their contractual duty.

Question 23

What is the first exception to the 3rd rule regarding consideration? (Contractual duty)

Answer 23

Going beyond duty

Hartley v Ponsonby - 17 pirates abandoned

Question 24

What is the second exception to the 3rd rule regarding consideration? (Contractual duty)

Answer 24

Williams v Roffey Bros
-paid extra to avoid penalty

Question 25

What is the legal principle of Williams v Roffey Bros

Answer 25

If there is a practical benefit to you performing the contract, this is good consideration (Exception 2 to Contractual duty)

Question 26

What is the third exception to the 3rd rule regarding consideration? (Contractual duty)

Answer 26

Third party contracts

Question 27

What case shows that existing contractual duties with a third-party can be good consideration

Answer 27

Scotson v Pegg -coal delivery

Question 28

What is the fourth rule of consideration?

Answer 28

Consideration must move from the promisee

Question 29

What case is used to prove the fourth rule of consideration?

Answer 29

Tweedle v Atkinson -son sued father in law’s esate on his fathers behalf

Question 30

What was the legal principle of Tweddle v Atkinson

Answer 30

The son had not given good consideration, therefore could not sue