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What is contractual consideration?
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Key Terms
Term
Definition
What is contractual consideration?
Consideration is the mutual exchange of something valuable between parties, essential for an agreement to be enforceable.
What principle was established in Williams v Roffey Bros (1991)?
The court held that a 'practical benefit' obtained by the promisor can count as valid consideration.
What was the significance of Stilk v Myrick (1809)?
The case established that performing an existing contractual duty is not valid consideration for additional payment.
What does 'consideration must move from the promisee' mean?
The promisee must provide the consideration; it cannot be provided by a third party.
Explain the rule 'consideration must be sufficient but need not be adequate'.
Consideration must have some value (sufficiency) but does not need to be equivalent in value to what is received (adequacy).
What is 'past consideration' and why is it not valid?
Past consideration refers to a promise made after an act has been performed, which is unenforceable because the consideration is 'past'.
Related Flashcard Decks
| Term | Definition |
|---|---|
What is contractual consideration? | Consideration is the mutual exchange of something valuable between parties, essential for an agreement to be enforceable. |
What principle was established in Williams v Roffey Bros (1991)? | The court held that a 'practical benefit' obtained by the promisor can count as valid consideration. |
What was the significance of Stilk v Myrick (1809)? | The case established that performing an existing contractual duty is not valid consideration for additional payment. |
What does 'consideration must move from the promisee' mean? | The promisee must provide the consideration; it cannot be provided by a third party. |
Explain the rule 'consideration must be sufficient but need not be adequate'. | Consideration must have some value (sufficiency) but does not need to be equivalent in value to what is received (adequacy). |
What is 'past consideration' and why is it not valid? | Past consideration refers to a promise made after an act has been performed, which is unenforceable because the consideration is 'past'. |
What was decided in MWB v Rock Advertising (2018) regarding oral modifications? | The UK Supreme Court held that No Oral Modification clauses are legally effective, making oral variations invalid regardless of consideration. |
How does the case of Foakes v Beer (1884) relate to consideration? | It questioned whether a promise to accept less than the full amount due is valid consideration, concluding that it is not without additional consideration. |
What does the case of Hamer v Sidway (1891) illustrate about consideration? | It shows that forbearance, or giving up a legal right, can be valid consideration. |
What is the significance of the case Re McArdle (1951) in terms of past consideration? | It demonstrated that improvements made before a promise of payment are considered past consideration and thus unenforceable. |