Contract Law - Consideration 0.0 / 5 ? LawContractUniversityNone Created by: epierce1998Created on: 17-05-18 12:35 For an agreement to be binding there must be some detriment/benefit conferred by each party – “price of the promise” Currie v Misa 1 of 25 Consideration must be sufficient, but need not be accurate Thomas v Thomas 2 of 25 Consideration must have some economic value White v Bluett 3 of 25 The economic value can be very minimal Chappell & Co Ltd v Nestle Co Ltd 4 of 25 Consideration must move from the promisee Not strictly true with modern developments 5 of 25 Past consideration = No consideration Roscorla v Thomas 6 of 25 Past consideration = No considerate, harsh application Re McArdle 7 of 25 Exception to the past consideration rule – Requested performance exception Lampleigh v Braithwaite 8 of 25 Both parties would’ve understood that payment was to follow performance Re Casey's Patents 9 of 25 The payment/conferment of a benefit would’ve been enforceable had it been promised in advance Pao On v Lau Yiu Long 10 of 25 Performance of an existing public duty = not good consideration Collins v Godefroy 11 of 25 However, exceeding an existing public duty can be good consideration Ward v Byham 12 of 25 Performance of an existing contractual duty owed to the same promisor = not good consideration Stilk v Myrick 13 of 25 However, exceeding the duty owed to the same promisor can count as good consideration Hartley v Ponsonby 14 of 25 Performance of an existing contractual duty can be good consideration if the performance confers a practical benefit on the other party Williams v Roffey Bros 15 of 25 Glidewell Criteria Williams v Roffey Bros 16 of 25 Performance of a duty owed to a 3rd party can be good consideration Shadwell v Shadwell 17 of 25 Performance of a duty owed to a 3rd party can be good consideration - Leading Case The Eurymedon 18 of 25 A promise to perform a duty owed to a 3rd party can be good consideration Pao On v Lau Yiu Long 19 of 25 Part payment of a debt is not good consideration to discharge a debt Pinnel's Case 20 of 25 Part payment of a debt is not good consideration to discharge a debt - confirmed Foakes v Beer 21 of 25 Above rule is harsh but provides protection from debtor exploiting financial position of the creditor D&C Builders v Rees 22 of 25 If you provide something in addition to what was contracted for then this can be good consideration to discharge a debt- limited exception Pinnel's Case 23 of 25 Payment in a different form or at a different time could be good consideration Pinnel's Case 24 of 25 Part-payment of a debt does not confer a practical benefit onto the creditor Re Selectmove 25 of 25
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