LLB Law Year 1 Contract Law: Consideration

When is a promise enforceable?

When its contained in a document which qualifies as a deed or its given in exchange for consideration. Consideration is the price tag on the promise. A gift isn't enforceable.

What does 'Consideration must move from the promisee' mean and the what is the defining case?

A person to whom a promise is made, can only enforce the promise if they personally provide consideration for it. Dunlop v Selfridge 1915

What does 'Consideration must not be past' mean and the what is the defining case?

A promise that is made after the act has been performed is generally not enforceable as it isn't supported by consideration. It isn't part of the bargain. Re McArdle 1951: Promisee didn't have payment in mind when she did the work, therefore, wasn't entitled to compensation.

Will a 'Duty imposed by the promisor by contract' be good consideration and what is the defining case?

Williams Roffery Bro's and Nicholls 1990: C proved good consideration, although, D was doing no more than legally obligated. D had obtained practical benefit from the promise to pay more for the performance.

What is 'Adequacy-Forbearance' and what are the defining cases?

A promise to refrain from suing, or actual forbearance, is generally sufficient consideration. Cook v Wright 1861: There was good consideration. C honestly believed the claim was good. Wade v Simeon 1846: Forbearing to sue is an invalid claim. Cant be good consideration. White v Bluett 1853: Forbearance from complaining wasn't good consideration. Hamer v Sidway 1891: Forbearance from smoking, gambling and drinking was good consideration.

What are the two definitions of Consideration and in what cases are they stated in?

Classic definition in Currie v Misa 1875: A valuable consideration, in the sense of the law, may consist either in some right, interest, profit or benefit to one party or some forbearance, detriment, loss or responsibility suffered by the other Further definition in Thomas v Thomas 1843: Consideration means something which is of some value in the eye of the law, moving from the plaintiff, it may be something detriment to the plaintiff or some benefit to the defendant, but at all events it must be moving from the plaintiff.

What are the 3 principles of the Doctrine of Consideration?

Consideration must not be past. Consideration must move from the promisee consideration must be sufficient but not need be adequate.

When is the sufficiency of good consideration inadequate and what are the 3 principles?

Courts will not find everything as valid consideration. It will be doubtful when: There is a duty imposed by general law; a duty imposed by a third party and a duty imposed to the promisor by contract.

What does 'Consideration must be sufficient but not need be adequate' mean and the what is the defining cases?

Courts won't enforce a promise unless something of value is given in return. The courts don't ask if adequate value has been given. Some value is sufficient. Bainbridge v Firmstone: D got what he wanted in return for his promise. Chappell v Nestle 1960: Despite trivial economic value, wrappers were good consideration.

Will a 'Duty imposed by a third party' be good consideration and what are the defining cases?

Generally good consideration. Shadwell v Shadwell 1860: Entitled to performance because of reliance on the promise. New Zealand v Satterwaithe the Eurymedon 1975: At the request of one of the parties.

Will a 'Duty imposed by general law' be good consideration and what are the defining cases?

Generally won't amount to good consideration. however: Ward v Byham 1956: A promise to perform an existing duty is sufficient consideration to support a promise. So long as there is nothing in the transaction which is contrary to public interest. Glasbrook Brothers v Glamorgan County Council: Entitled because they had done more than legally obligated.

Existing duty owed to promisor case?

MWB Business Exchange v Rock Advertising: Oral Variations isn't valid

What is the exception to 'Consideration must not be past' and the defining cases?

Mitigated from the Doctrine of Implied Assumpit. Lampleigh v Braithwait 1615: The exact order of events won't be decisive if the court is satisfied that the promise and the past action are part of the same overall transaction. Pao On v Lau Ying Long: Past Consideration will be good when: the past act was done at the promisor's request or it would've been legally enforceable if had it been made in advance.

Promising to accept less part-payment of debt cases?

Part-payment can have partial benefit meaning good consideration if alternative is more practical than the original offer. Pinnel's case 1602: Lesser sum will not satisfy whole debt. Foakes v Beer 1884: Promise not to sue for payment is unenforceable.

Definition of Consideration

The promise must be either a deed, or given in exchange for consideration.