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Consideration
•Referred to as a badge of enforceability
•It is mutuality of agreement, something be lost or gain
by both the promisor/promissee (Currie v misa –
detriment or forbearance suffered by promisor and
promissee)
•Benefit or detriment is the consideration, thus it must
be valuable
•One sided promises amount to gift, something has to be
passed (Dunlup v Selfridge – nothing was passed from
the promisee)
•When consideration is not obvious, equity is use
through estoppel (eringthon v eringthon – father died
after having bought and promised his son and his wife
that he would transfer property in their name if they kept
up mortgage payments. Other family members tried to
take the house but was estopped because they were
paying the mortgage ).
Executory Consideration – future promises to do
something like for example supplying goods for future
performance
• Re McArdle – where it was suggested that in consideration for carrying
  out alterations (though all the work on the house had been completed at
  the time the document was signed).


Executed –similar to a unilateral contract where one
person makes a promise for when the act is completed.

• Carlill v Carbolic smokeball company
Must not be past – A gives b a ride and upon arrival B promises to give
A money for petrol. Promise not enforceable since the ride had already
happened:
 •(Re MCardle, Plaintiff carried out work refurbishing a house that his siblings had
  beneficial interest. He asked them to contribute towards the cost, but this was not
  enforceable because work was completed before any promise of payment was made.


Exception: Act constituting consideration must be done at the
promisor’s request

 •Lampleigh V Brathwaite – B killed a man and asked Lh to get him a pardon for a fee.
  Previous request and subsequent promise was treated as the same transaction
Must be sufficient, need not be adequate:
having value means it is real/sufficient
• Chapple v Nestle – special offer being made to obtain a
  record with three wrappers, copyright was owned by nestle
  who claimed breach, the wrappers represented sufficient
  consideration – courts not concerned whether the deal was
  bad)


Must move from the promisee – to enforce something must be
provided
• Tweddle v Atkinson – Father of a bride and groom
  promised to give them some money after they
  were married and he died. Son sued the executor
  but was unsuccessful because there was no
  consideration and he was not a party to the
  contract.
Performance of pre-existing duty – eg public duty
contrast with a person exceeding his duty


• Collins v Godfrey – persons being paid to go testify when he had already
  been subpoena thereby having a legal duty to do so


Glassbrook v Glamorgan CC – Officers protecting striking
minors but was asked to stay on the premises. They had
a duty to perform but they are entitled to determine how
that duty would be performed.
Existing contractual duty – already bound under a contract




•Stilk v Myrick-two sailors abandoned a ship and the captain agreed to pay the others if
 they would sail the ship back – unenforceable as they were already legally bound to do
 so and making a promise to sail back was not valid consideration


Williams & Rofley redefined this principle to say that if in the
bargaining consideration their is a practical benefit (eg getting some
additional benefit – in this case Roffley would get a chance of the
completion of the project on time (performance) and Williams would
get an additional payment)
Pinnel’s Case – P was owed some money and the def paid a part of debt.
This did not amount to valid consideration unless at the promisor’s
request it is made 1) before the due date; 2) with a chattel; 3) to a different
destination
 • Exception: if something new is introduced into the relatinship it will be
   binding.
Contract variation - Stilk v Myrick-two sailors abandoned a ship
and the captain agreed to pay the others if they would sail the ship
back – unenforceable as they were already legally bound to do so –
contract could not be varied
 • Williams & Rofley redefined this principle to say that if in the
   bargaining consideration their is a practical benefit (eg
   getting some additional benefit – in this case Roffley would
   get a chance of the completion of the project on time
   (performance) and Williams would get an additional payment)
Equitable doctrine design to                                        Requirements:
stop a person from going                                            •A pre existing contract/legal
back on his promises not                 Lord Denning set the        obligation
supported by consideration              following principles: a     •Unambiguous promise

•High Trees case – deals with the      promise intended to be       •Change position

 modification of rent payable          binding, intended to be      •Must be equitable for promisor to
 during the second world war and                                     go back on his promise
                                     acted on, in fact acted on,
 the promise to accept part was to
 accommodate the circumstances
                                      is binding in so far as its
 of the war and the principles in        terms properly apply
 Pinnel’s case applied
Pre-existing        •Combe v Combe – a husband promising to maintain wife. Not
                          enforceable as estoppel was being used as a sword and not a
    contract/legal        shield

      obligation

                         •Promisee relied on the promise which provides the justification
 Clear unambiguous        for enforcement - Hightrees


       promise


                         •Promise is usually intended for the duration of the
                          contract, however under estoppel the promise may be limited.
  Change position -       Hightrees – the promise of the reduced rent is only good while
                          the second world war continued.




 Must be inequitable     •Baird v spencer – Plaintiffs sued Spencer for stopping them
                          from supplying clothes for them for years , though there was no
for the promisor to go    express contract. It failed as there was no certainty of contract
                          and estoppel could not create its own cause of action and
 back on his promise      provide a remedy

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Contract 1 consideration

  • 2. •Referred to as a badge of enforceability •It is mutuality of agreement, something be lost or gain by both the promisor/promissee (Currie v misa – detriment or forbearance suffered by promisor and promissee) •Benefit or detriment is the consideration, thus it must be valuable •One sided promises amount to gift, something has to be passed (Dunlup v Selfridge – nothing was passed from the promisee) •When consideration is not obvious, equity is use through estoppel (eringthon v eringthon – father died after having bought and promised his son and his wife that he would transfer property in their name if they kept up mortgage payments. Other family members tried to take the house but was estopped because they were paying the mortgage ).
  • 3. Executory Consideration – future promises to do something like for example supplying goods for future performance • Re McArdle – where it was suggested that in consideration for carrying out alterations (though all the work on the house had been completed at the time the document was signed). Executed –similar to a unilateral contract where one person makes a promise for when the act is completed. • Carlill v Carbolic smokeball company
  • 4. Must not be past – A gives b a ride and upon arrival B promises to give A money for petrol. Promise not enforceable since the ride had already happened: •(Re MCardle, Plaintiff carried out work refurbishing a house that his siblings had beneficial interest. He asked them to contribute towards the cost, but this was not enforceable because work was completed before any promise of payment was made. Exception: Act constituting consideration must be done at the promisor’s request •Lampleigh V Brathwaite – B killed a man and asked Lh to get him a pardon for a fee. Previous request and subsequent promise was treated as the same transaction
  • 5. Must be sufficient, need not be adequate: having value means it is real/sufficient • Chapple v Nestle – special offer being made to obtain a record with three wrappers, copyright was owned by nestle who claimed breach, the wrappers represented sufficient consideration – courts not concerned whether the deal was bad) Must move from the promisee – to enforce something must be provided • Tweddle v Atkinson – Father of a bride and groom promised to give them some money after they were married and he died. Son sued the executor but was unsuccessful because there was no consideration and he was not a party to the contract.
  • 6. Performance of pre-existing duty – eg public duty contrast with a person exceeding his duty • Collins v Godfrey – persons being paid to go testify when he had already been subpoena thereby having a legal duty to do so Glassbrook v Glamorgan CC – Officers protecting striking minors but was asked to stay on the premises. They had a duty to perform but they are entitled to determine how that duty would be performed.
  • 7. Existing contractual duty – already bound under a contract •Stilk v Myrick-two sailors abandoned a ship and the captain agreed to pay the others if they would sail the ship back – unenforceable as they were already legally bound to do so and making a promise to sail back was not valid consideration Williams & Rofley redefined this principle to say that if in the bargaining consideration their is a practical benefit (eg getting some additional benefit – in this case Roffley would get a chance of the completion of the project on time (performance) and Williams would get an additional payment)
  • 8. Pinnel’s Case – P was owed some money and the def paid a part of debt. This did not amount to valid consideration unless at the promisor’s request it is made 1) before the due date; 2) with a chattel; 3) to a different destination • Exception: if something new is introduced into the relatinship it will be binding. Contract variation - Stilk v Myrick-two sailors abandoned a ship and the captain agreed to pay the others if they would sail the ship back – unenforceable as they were already legally bound to do so – contract could not be varied • Williams & Rofley redefined this principle to say that if in the bargaining consideration their is a practical benefit (eg getting some additional benefit – in this case Roffley would get a chance of the completion of the project on time (performance) and Williams would get an additional payment)
  • 9. Equitable doctrine design to Requirements: stop a person from going •A pre existing contract/legal back on his promises not Lord Denning set the obligation supported by consideration following principles: a •Unambiguous promise •High Trees case – deals with the promise intended to be •Change position modification of rent payable binding, intended to be •Must be equitable for promisor to during the second world war and go back on his promise acted on, in fact acted on, the promise to accept part was to accommodate the circumstances is binding in so far as its of the war and the principles in terms properly apply Pinnel’s case applied
  • 10. Pre-existing •Combe v Combe – a husband promising to maintain wife. Not enforceable as estoppel was being used as a sword and not a contract/legal shield obligation •Promisee relied on the promise which provides the justification Clear unambiguous for enforcement - Hightrees promise •Promise is usually intended for the duration of the contract, however under estoppel the promise may be limited. Change position - Hightrees – the promise of the reduced rent is only good while the second world war continued. Must be inequitable •Baird v spencer – Plaintiffs sued Spencer for stopping them from supplying clothes for them for years , though there was no for the promisor to go express contract. It failed as there was no certainty of contract and estoppel could not create its own cause of action and back on his promise provide a remedy