Contract Law Concepts
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Questions and Answers

What did the court hold in White v Bluett (1853) regarding Bluett's promise?

  • It constituted a legal duty.
  • It had no relation to the father.
  • It was too vague and insufficient for consideration. (correct)
  • It was enforceable due to clear consideration.

    • In Hamer v Sidway (1892), the promise was held unenforceable.

    False (B)

    What constituted good consideration in the case of Hamer v Sidway?

    Detriment suffered by the nephew.

    A promise to give remuneration for loss of time in Collins v Godefroy is considered a promise without __________.

    <p>consideration</p> Signup and view all the answers

    What was the significance of the ruling in Collins v Godefroy?

    <p>Duty imposed by law negates consideration. (B)</p> Signup and view all the answers

    The promise in Hamer v Sidway involved a legal obligation.

    <p>False (B)</p> Signup and view all the answers

    In White v Bluett, the promise was described as 'too __________'.

    <p>vague</p> Signup and view all the answers

    Match the following cases with their outcomes regarding consideration:

    <p>White v Bluett = Promise found too vague Hamer v Sidway = Promise held enforceable due to detriment Collins v Godefroy = Promise without consideration</p> Signup and view all the answers

    What was the primary legal principle established in the case of Glassbrook Bros Ltd v Glamorgan City Council?

    <p>The police provided more protection than legally required. (D)</p> Signup and view all the answers

    In Stilk v Myrick, the remaining crew members were considered to have done more than their contractual duty.

    <p>False (B)</p> Signup and view all the answers

    What was the nature of the additional responsibilities undertaken by the police in the case of Glassbrook Bros Ltd v Glamorgan City Council?

    <p>They provided a stationary force instead of a mobile force.</p> Signup and view all the answers

    The decision in Stilk v Myrick concluded that there was no existing __________ for the captain's promise.

    <p>consideration</p> Signup and view all the answers

    Match the cases to their corresponding legal principles:

    <p>Glassbrook Bros Ltd v Glamorgan City Council = Police exceeded legal obligations for protection Stilk v Myrick = No additional consideration for existing duties Sea-Land Service Inc. = Affirmed the principles of contractual duties Public duty in contracts = Duty to perform what is legally required</p> Signup and view all the answers

    What is required for consideration to be enforceable?

    <p>It must move from the promisee and not necessarily be adequate (D)</p> Signup and view all the answers

    Consideration must move from the promisor in order for a promise to be enforceable.

    <p>False (B)</p> Signup and view all the answers

    In the case of Tweedle v Atkinson, why could Tweedle not enforce the contract?

    <p>He was not a party to the contract and no consideration flowed from him.</p> Signup and view all the answers

    An act done at the ________ request can sometimes be consideration for a promise.

    <p>promisor's</p> Signup and view all the answers

    Match the legal cases with their significance regarding consideration:

    <p>Sim v Lim Ah Ghee (1995) = Established that past consideration can become executed consideration Pao On v Lau Yiu Long (1980) = Explained the conditions under which past acts can be consideration Tweedle v Atkinson (1861) = Demonstrated that consideration must flow from the promisee General Rules of Consideration = Outlined that consideration need not be adequate but must be sufficient</p> Signup and view all the answers

    Which statement is true regarding the relationship between act and consideration?

    <p>Consideration can sometimes be satisfied by actions taken before the promise. (B)</p> Signup and view all the answers

    Consideration must always be adequate to be valid.

    <p>False (B)</p> Signup and view all the answers

    What is meant by 'sufficient consideration'?

    <p>Sufficient consideration means that the consideration must be legally recognized and accepted, even if not adequate in value.</p> Signup and view all the answers

    What is the primary rule established by Pinnel's Case?

    <p>Partial payment does not discharge the entire debt, unless certain conditions are met. (B)</p> Signup and view all the answers

    A promise to forbear from suing can constitute sufficient consideration.

    <p>True (A)</p> Signup and view all the answers

    In what year was Foakes v Beer decided?

    <p>1884</p> Signup and view all the answers

    Under certain circumstances, partial payment may consist of valuable consideration, as long as it was made at the request of the ______.

    <p>creditor</p> Signup and view all the answers

    Match the following cases with their key principles:

    <p>Pinnel's Case = Partial payment does not discharge the entire debt unless specific conditions are met. Foakes v Beer = Affirmed the principle of Pinnel's Case regarding consideration. Alliance Bank Ltd v Broom = Established forbearance can be sufficient consideration. K-Rex Finance Ltd v Cheng = Related to compromises of legal actions.</p> Signup and view all the answers

    Which of the following statements about the case of Foakes v Beer is true?

    <p>The HOL held that Beer could still claim the money. (D)</p> Signup and view all the answers

    Forbearance to sue is always valid consideration in all legal agreements.

    <p>False (B)</p> Signup and view all the answers

    What type of consideration does a promise to forbear from suing represent?

    <p>Sufficient or valuable consideration</p> Signup and view all the answers

    What must a claimant have to support a legal action?

    <p>Honest belief in the chance of success (D)</p> Signup and view all the answers

    The Eurymedon case established that performing an existing contractual duty to a third party can constitute good consideration.

    <p>True (A)</p> Signup and view all the answers

    What does 'composite agreements' refer to in the context of debt collection?

    <p>Collective agreements among creditors to settle for a smaller sum.</p> Signup and view all the answers

    A reasonable legal action must not be ________.

    <p>frivolous</p> Signup and view all the answers

    Match the case with its significance:

    <p>Miles v New Zealand Alford Estate Co (1886) = Legal action must be reasonable The Eurymedon (1975) = Performance of existing duty as consideration Pao On v Lau Yiu Long (1980) = Clarification of consideration SSAB Oxelosund AB v Xendral Trading Pte Ltd (1992) = Accepted concepts of consideration in Singapore</p> Signup and view all the answers

    In the context of legal action, which factor is crucial for the validity of a claim?

    <p>Honesty about facts that could affect the claim's validity (A)</p> Signup and view all the answers

    In legal terms, consideration can only exist if there is an exchange of tangible goods.

    <p>False (B)</p> Signup and view all the answers

    What is an example of good consideration according to legal principles?

    <p>Unloading a ship despite a prior obligation.</p> Signup and view all the answers

    Study Notes

    Exception to Past Consideration

    • Past consideration can be treated as executed consideration, making it valid.
    • Acts performed at the request of the promisor can form good consideration if both parties imply a reward for performance.
    • If actual promises are made prior to consideration by the promisee, they must be enforceable.

    Key Cases in Consideration

    • Pao On v Lau Yiu Long (1980): Essential components of consideration include a request by the promisor, mutual understanding of remuneration, and enforceability of the promised benefit.
    • Tweedle v Atkinson (1861): A non-party to a contract can neither enforce it nor provide consideration; consideration must flow from the promisee.

    Rules on Consideration

    • Must originate from the promisee, but does not have to go to the promisor.
    • A party can only enforce a promise if they provide consideration associated with it.
    • Consideration need not be adequate, but must be sufficient and not vague or insubstantial.

    Notable Cases on Insufficient Consideration

    • White v Bluett (1853): A promise to not bore someone was deemed too vague and insufficient as consideration.
    • Hamer v Sidway (1892): The nephew’s detriment was valid consideration for the promise made to him.

    Performance and Duty

    • Collins v Godefroy (1831): A promise of compensation for legal duty performance (e.g. subpoena attendance) does not hold if acting under public obligation.
    • If doing more than legally required can constitute sufficient consideration, as seen in Glassbrook Bros Ltd v Glamorgan City Council (1925) where police provided extra services.

    Existing Contractual Duties

    • Stilk v Myrick (1809): No new consideration arises if crew members fulfill existing duties without any extras, ruling out their claim to additional payments.

    Partial Payment of Debt

    • Pinnel’s Case (1602): Part payment doesn’t discharge the debt unless it was requested by the creditor with differing terms.
    • Foakes v Beer (1884): The ruling reaffirmed that a debtor’s promise not to take further action lacks consideration.

    Forbearance as Consideration

    • Promises to refrain from suing or claiming can constitute sufficient consideration, confirmed in cases like Alliance Bank Ltd v Broom (1864).

    Performance of Existing Contracts

    • Performance of existing obligations to a third party can serve as valid consideration, exemplified in The Eurymedon (1975) which upheld that unloading duties constituted sufficient consideration for a separate contract.

    Composite Agreements

    • In debtor-creditor scenarios, collective agreements to accept a smaller sum as full settlement can be considered valid and enforceable agreements.

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    Related Documents

    Consideration and Intention to Create Legal Relations PDF

    Description

    Explore the principles of contract law with a focus on past and executed consideration. Understand the elements that define good consideration, including the promises made and the implications of actions taken at the promisor's request. Test your knowledge on these essential legal concepts.

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