Contract 2 - Consideration

Question 1

Consideration?

Answer 1

Promise for something in return.
Bilateral - exchange of promises
Unilateral - promise in return for an act.

Adequate - some value (even nominal)
Sufficient - has to be proper (not love and affection etc..). performance of public duty not sufficient (unless exceeding that duty).

Question 2

Past consideration

Answer 2

• Payment after a favour, does not amount to consideration.
  Exception;
  Past act done at promisors request
  Mutual understanding between the parties woudl be compensated in some way
  Had promise been made in advance would have been legally enforceable.

Question 3

Contractual variations

Answer 3

Require all elemenets.
Consideration shortfall.
Must confer a benefit or suffer a detriment. (normally only one so no consideration).

If performing existing duty does not count. If exceeds this does.
Or if it confers a practical benefit (Williams v Rofey Bros & Nicholls 1991).

Question 4

Promise to accept less

Answer 4

Agreement between creditor and debtor not binding on creditor.
Foakes v Beer - interest lower not binding.

Consideration must be sufficient but need not be adequate.
Provided a debtor gives something else in return for promise will be consideration.

Question 5

Promissory estoppel

Answer 5

Creditor stopped if unfair to do so.
-made promise not to enforce legal rights
-someone relied on that promise
-estopped from enforcing legal rights.

Note
-Used as a defence
-Must have been promise to waive legal rights
-must have acted on promise
-can resume by reasonable notice (rent)
-Clean hands.