Beruflich Dokumente
Kultur Dokumente
CONSIDERARTION
INTRO
Benefit and detriment test
Examine what constitutes a valuable,
valid consideration
Detriment to promisee/ benefit to
promissor
If both parties do not furnish
consideration, contract is said to lack
consideration no contract
definition
Executed consideration
At time of formation,
consideration has
already been
performed
Usually occurs in
unilateral contracts
past consideration
MUST NOT BE PAST
Past consideration is NO consideration (ROSCORLA
V THOMAS) promise made after sales
Lawyers find this confusing as the emphasis is not
really about the time that consideration was given
but more about whether consideration was given
in exchange for the other partys consideration
Must be given in return for the promise/act
Whether or not consideration is past or not is a
question of fact and wording of agreement will not
necessarily be conclusive - Re McArdle
Past consideration
exceptions
Where past consideration was
provided at promissors request and
it was understood that payment
would be made
Lampleigh v Brathwait
Bill of exchange s27 of the Bill
Exchange Act 1882 - antecedent
debt may be consideration for
receipt of bill of exchange
Consideration must be of
economic value
Despite this rule, looking at Chappell
v Nestle, economic value may be
negligible
There must be some physical value
rather than just an emotional
/sentimental one
White v Bluett sons promise not
sufficient consideration to make his
fathers promise binding no
economic value
maxims