the exchange of something of the value of something else in value
1 of 18
what is the legal definition of consideration?
some right ,interest ,profit or benefit accruing to the one party , or some forbearance , detriment, loss or responsibility given , suffered or undertaken by the other-Currie V Misa 1874wha
2 of 18
what happens if a party fails to uphold that promise?
the law can uphold it from them
3 of 18
what must be present in consideration?
a benefit and a detriment
4 of 18
what is the reasons for consideration?
.ensures contracts create a win win situation
.promises without consideration(bare promises) cannot be enforced
.both parties must agree to promise something in value
5 of 18
what is executory consideration?
both sides of the party still have to carry out their promise
6 of 18
what is executed consideration?
when both parties have fulfilled their promise
7 of 18
what are the five rules of consideration?
1)must not be in the past
2)must move from the promisee
3)it must not be vague
4)it must be sufficient need not be adequate
5)it cannot be a performance of an existing duty
8 of 18
explain the meaning of the first rule of consideration(must not be in the past)
consideration has no value when it has already been done at the time of the agreement was made
9 of 18
key case for consideration- must not be in the past
Re McArdle
10 of 18
explain the meaning of must move from the promisee
if the person other than the promisee is to provide consideration, if the promisee cannot enforce the agreement
the parties involved must be the ones who provide consideration
11 of 18
what is the key case for must move from the promisee
Tweedle V Atkinson
12 of 18
what is meant by consideration must not be vague?
the consideration must be of legal value such as tangible or identifiable
13 of 18
what is the key case for consideration must not be vague
White V Bluett
14 of 18
what is meant by consideration must be sufficient need not be adequate?
adequacy is the idea that parties to the contract themselves agree that the value of things being exchanged is acceptable
the law is not interest in equivalence
sufficient consideration must be real and have some value
15 of 18
what is the key case for must be sufficient need not be adequate?
Thomas V Thomas
Chappel V Nestle Co
16 of 18
explain the rule of performance of an existing duty cannot be consideration
if someone already has a legal duty to do something that cannot be consideration
however if the party goes above and beyond their contract it would be classed as consideration
17 of 18
kay cases for existing duty cannot be consideration
Stilk V Myrick
Hartley V Ponsoby
Collins V Godefroy
Glassbrook Bros V Glamorgan County Council
Ward V Byham
Williams v Roffery Bros
18 of 18
Other cards in this set
Card 2
Front
what is the legal definition of consideration?
Back
some right ,interest ,profit or benefit accruing to the one party , or some forbearance , detriment, loss or responsibility given , suffered or undertaken by the other-Currie V Misa 1874wha
Card 3
Front
what happens if a party fails to uphold that promise?
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