Podcast
Questions and Answers
What is consideration in the context of contract formation?
What is consideration in the context of contract formation?
Which of the following statements is true regarding the sufficiency of consideration?
Which of the following statements is true regarding the sufficiency of consideration?
In which case was it established that a nominal amount could represent sufficient consideration?
In which case was it established that a nominal amount could represent sufficient consideration?
How is the benefit conferred by the plaintiff described?
How is the benefit conferred by the plaintiff described?
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What constitutes insufficient consideration?
What constitutes insufficient consideration?
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When can a promise made without a sealed document still be enforceable?
When can a promise made without a sealed document still be enforceable?
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Why was the executor held bound by the undertaking in Thomas v. Thomas?
Why was the executor held bound by the undertaking in Thomas v. Thomas?
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What is NOT a requirement for consideration in contractual agreements?
What is NOT a requirement for consideration in contractual agreements?
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Flashcards
What is consideration?
What is consideration?
Something of value exchanged for a promise in a contract. It can be an act, a promise, or a forbearance.
Sufficient vs. Adequate Consideration
Sufficient vs. Adequate Consideration
Consideration must be real and have value, but it doesn't need to be equal to the value of the promise.
What is a promise as consideration?
What is a promise as consideration?
A promise made by a party in a contract that is considered to be a valuable thing in the eyes of the law.
What is forbearance as consideration?
What is forbearance as consideration?
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What is the benefit in consideration?
What is the benefit in consideration?
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What is the detriment in consideration?
What is the detriment in consideration?
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What is a document under seal?
What is a document under seal?
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What is the case of Thomas v. Thomas?
What is the case of Thomas v. Thomas?
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Study Notes
Consideration in Contract Law
- Consideration is crucial for enforcing promises in contracts. A plaintiff must show either a sealed document or consideration to initiate a lawsuit against a defendant based on a promise.
- Currie v. Misa (1875) defines consideration as a benefit accruing to one party or a detriment, loss, or responsibility taken on by the other.
- Essentially, consideration is the price paid for the defendant's promise. The plaintiff must demonstrate they gave something in exchange (an act or a promise).
- This benefit to the defendant can be conferred directly or indirectly (on someone else at the defendant's request).
Rules Governing Consideration
- Sufficiency, not Adequacy: Consideration must be real and valuable, but it doesn't have to be equal in value to the promise.
- Real Value: Worthless or unreal consideration is insufficient. The fact the exchange is unequal (in terms of market value) does not make the consideration invalid.
- Example: A promise to sell a car for a very small sum (e.g., N1) is still sufficient consideration, regardless of the obvious inadequacy.
- Thomas v. Thomas (1842): This case illustrates sufficiency. A widow could live in a house in exchange for paying £1 annually. This was considered good consideration, binding the executor to honour the agreement, even stemming from the husband's wishes.
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Description
Explore the fundamental concept of consideration in contract law, which is vital for the enforcement of promises. Understand the definitions, rules, and applications of consideration, including examples such as the notable case of Currie v. Misa. Test your knowledge on sufficiency, real value, and the implications of these principles.
