Contract Law Consideration

Consideration must be sufficient, meaning it must hold some value, though not necessarily equivalent to monetary value.

'Fresh consideration' refers to something new that a party brings to the contract, which was not previously held.

No, consideration cannot be based on past actions or obligations; it must be executory or executed only.

<p>Chappell &amp; Co Ltd v Nestle Co Ltd is a case illustrating that consideration must have some value.</p> Signup and view all the answers

<p>Executed consideration refers to something that has been completed, while executory consideration refers to obligations that are yet to be fulfilled.</p> Signup and view all the answers

<p>A significant disparity may suggest coercion or unfair advantage, raising questions about the fairness of the agreement.</p> Signup and view all the answers

<p>Consideration refers to something exchanged for a promise, such as goods, services, or money.</p> Signup and view all the answers

<p>Consideration refers to something of value that is exchanged between parties, either as a benefit to one party or a detriment to the other.</p> Signup and view all the answers

<p>Yes, if it can be proven that the past conduct was intended to be included under a new agreement, it may potentially be applicable.</p> Signup and view all the answers

<p>In 'Stilk v Myrick,' it was established that fulfilling a pre-existing duty does not constitute valid consideration.</p> Signup and view all the answers

<p>An example of executory consideration would be a promise to deliver goods in the future in exchange for a present payment.</p> Signup and view all the answers

<p>The Rule in Pinnel’s Case states that part payment of a debt is not valid consideration to discharge the whole debt.</p> Signup and view all the answers

<p>Consideration is crucial because it demonstrates that both parties have provided something of value, making the contract legally binding.</p> Signup and view all the answers

<p>A gratuitous promise is a promise made without consideration, which cannot be enforced by law.</p> Signup and view all the answers

<p>A promise based on a pre-existing obligation is unenforceable because it lacks fresh consideration.</p> Signup and view all the answers

<p>Consideration serves as the essential element that legitimizes and enforces the agreement between parties.</p> Signup and view all the answers

<p>Roscorla v Thomas established that past consideration cannot be relied upon for valid contractual agreements.</p> Signup and view all the answers

<p>Consideration can involve forbearance, which is when one party refrains from doing something they are legally entitled to do.</p> Signup and view all the answers

<p>Consideration can involve a low-value item provided for a service, such as paying $5 for repairs worth $50.</p> Signup and view all the answers

<p>Variation in construction contracts allows one party to do additional work in exchange for extra money.</p> Signup and view all the answers

<p>In Currie v Misa, consideration was defined as a valuable benefit or detriment provided by one party to the other in exchange for a promise.</p> Signup and view all the answers

<p>Valuable consideration is something that the other party was not entitled to before the contract.</p> Signup and view all the answers

<p>A breach of contract occurs when one party fails to perform their obligations as outlined in the contract after it has been formed.</p> Signup and view all the answers

<p>No, past consideration cannot be used as a basis for a new contract because it does not involve a present exchange.</p> Signup and view all the answers

<p>The phrase 'something for something' emphasizes the reciprocal nature of consideration in contracts, where each party must provide value.</p> Signup and view all the answers

<p>If consideration is not performed, it is considered a breach of contract, potentially leading to legal consequences.</p> Signup and view all the answers

<p>To modify or end a contract, further consideration may be required to create a binding agreement.</p> Signup and view all the answers

<p>An example is agreeing to refrain from suing in exchange for a settlement; this involves giving up a legal right.</p> Signup and view all the answers

<p>Intention is included as it determines whether the parties intended to create a legal obligation, which is essential for a contract's validity.</p> Signup and view all the answers

<p>Key cases illustrate how courts have interpreted and applied the concept of consideration in specific legal contexts.</p> Signup and view all the answers

<p>Social presumption and commercial presumption.</p> Signup and view all the answers

<p>By arguing that the requested work was part of the pre-existing duty.</p> Signup and view all the answers

<p>Variations are often expensive and contentious.</p> Signup and view all the answers

<p>It shows the distinction between a variation and a pre-existing duty.</p> Signup and view all the answers

<p>It indicates the parties do not want to be legally bound.</p> Signup and view all the answers

<p>Consideration refers to the value exchanged within a contract, which can involve obligations and debts.</p> Signup and view all the answers

<p>It establishes that fulfilling a pre-existing duty does not constitute valid consideration for a new agreement.</p> Signup and view all the answers

<p>Intention ensures the parties are willing to enter into a binding agreement.</p> Signup and view all the answers

<p>Because builders often seek to charge for additional work disguised as variations.</p> Signup and view all the answers

<p>By evaluating the original contract and determining the nature of the requested work.</p> Signup and view all the answers

<p>Forbearance refers to the act of refraining from exercising a right, which can serve as consideration in a contract.</p> Signup and view all the answers

<p>This case illustrated that the presence of consideration is not necessarily dependent on its adequacy, only its sufficiency.</p> Signup and view all the answers

<p>'Binding in honour only' indicates that the parties do not intend to create a legally enforceable contract.</p> Signup and view all the answers

<p>'Pinnel’s Case' establishes that part payment of a debt does not, by itself, constitute valid consideration for a discharge of the entire debt.</p> Signup and view all the answers

<p>The case establishes that past consideration is not valid for enforcing a new promise.</p> Signup and view all the answers

<p>Intention is crucial because both parties must intend to create a legal obligation for the contract to be enforceable.</p> Signup and view all the answers

<p>'Stilk v Myrick' holds that performance of a pre-existing duty cannot serve as consideration for a new promise.</p> Signup and view all the answers

<p>A gratuitous promise implies a promise made without consideration, thus lacking enforceability in a court of law.</p> Signup and view all the answers

<p>'Hartley v Ponsonby' demonstrates that if a party goes beyond their existing duties, that may constitute new consideration.</p> Signup and view all the answers

<p>In executory contracts, consideration manifests as a promise to perform an action in the future by one or both parties.</p> Signup and view all the answers

<p>Sufficient consideration must have some value but does not need to match the monetary value of the other party's consideration.</p> Signup and view all the answers

<p>Past consideration is barred because it implies that a party has already performed their duty prior to the agreement, thus lacking a fresh obligation.</p> Signup and view all the answers

<p>Lampleigh v Braithwait suggests that past consideration may be acceptable if it was intended to be a foundational basis for a subsequent promise.</p> Signup and view all the answers

<p>A significant disparity may raise ethical concerns regarding the fairness of the exchange and the intentions of the parties involved.</p> Signup and view all the answers

<p>Executed consideration refers to something already performed under the contract, whereas executory consideration involves promises of performance yet to be fulfilled.</p> Signup and view all the answers

<p>A promise that is not tied to a past obligation is enforceable because it reflects a new duty that the promisor has accepted.</p> Signup and view all the answers

<p>It illustrates that a promise to perform a pre-existing duty is not valid consideration.</p> Signup and view all the answers

<p>Chappell &amp; Co Ltd v Nestle Co Ltd establishes that consideration must be sufficient in value and can be something other than monetary.</p> Signup and view all the answers

<p>It establishes that part payment of a debt is not sufficient consideration to discharge the entire debt.</p> Signup and view all the answers

<p>Dunton v Dunton reinforces that while consideration does not need to match market value, it must still possess some form of value.</p> Signup and view all the answers

<p>Because a valid contract requires that each party provides something of value to the other.</p> Signup and view all the answers

<p>'Fresh consideration' is vital for ensuring that each party is actively participating in the agreement with new obligations, thereby legitimizing the contract.</p> Signup and view all the answers

<p>Variation refers to changes in the scope of work agreed upon in a contract, often resulting in additional payments.</p> Signup and view all the answers

<p>It signifies that consideration must have some value, even if not equivalent to the other party's consideration.</p> Signup and view all the answers

<p>It reinforces that part payment of a debt does not remove the debtor's obligation for the remaining balance.</p> Signup and view all the answers

<p>Contract modifications require fresh consideration, as performance of a pre-existing duty cannot support new promises.</p> Signup and view all the answers

<p>A client can argue that the requested change was part of the pre-existing duty and not an extra variation, referencing the promised scope of work.</p> Signup and view all the answers

<p>Builders may quote low prices initially to win contracts and then seek to recoup profit through variations for changes requested by the client.</p> Signup and view all the answers

<p>They allow for certain acknowledgments of value even when strict traditional rules may not support them.</p> Signup and view all the answers

<p>They cannot claim additional compensation since they are merely fulfilling what was already required by law.</p> Signup and view all the answers

<p>The principle was established in the case of Hartley v Ponsonby, which addressed the nature of variations in contract work.</p> Signup and view all the answers

<p>This indicates that the parties do not intend to create a legally binding commitment, emphasizing a non-legal agreement instead.</p> Signup and view all the answers

<p>If the act was something that the promisor was already bound to do by existing duty, it lacks new value.</p> Signup and view all the answers

<p>Variations are costly primarily because they involve disputes over additional charges that are frequently contested by clients.</p> Signup and view all the answers

<p>This legal concept is based on consideration and the interpretation of pre-existing duties, as highlighted in Stilk v Myrick.</p> Signup and view all the answers

<p>Intention in commercial contracts can often be presumed and is usually inferred from the context and actions of the parties involved.</p> Signup and view all the answers

<p>A common outcome is escalation to disputes that require resolution through negotiation, mediation or even litigation, depending on the terms of their contract.</p> Signup and view all the answers

<p>The case of Stilk v Myrick primarily addresses the concept of pre-existing duties and the limitations of enforcing claims for additional consideration.</p> Signup and view all the answers

<p>Misunderstandings typically arise from unclear communication regarding what constitutes a variation compared to the initial scope of work.</p> Signup and view all the answers

<p>Consideration must be sufficient.</p> Signup and view all the answers

<p>Consideration can be executed or executory, but not past.</p> Signup and view all the answers

<p>There may be concerns regarding fairness and exploitation.</p> Signup and view all the answers

<p>Fresh consideration refers to something new that was not previously part of an agreement.</p> Signup and view all the answers

<p>Past conduct can be valid if intended to be covered by a later promise.</p> Signup and view all the answers

<p>It demonstrates that consideration does not need to be adequate but must be sufficient.</p> Signup and view all the answers

<p>Past consideration cannot be used in new agreements.</p> Signup and view all the answers

<p>An agreement to complete a service in the future is executory consideration.</p> Signup and view all the answers

<p>It indicates that the parties do not intend to create a legally enforceable contract.</p> Signup and view all the answers

<p>It emphasizes the necessity of mutual consideration between contracting parties.</p> Signup and view all the answers

<p>Consideration is essential because it makes a contract binding and enforceable by ensuring that something of value is exchanged between the parties.</p> Signup and view all the answers

<p>A gratuitous promise lacks consideration, meaning no exchange of value occurs, making it unenforceable as a contract.</p> Signup and view all the answers

<p>Forbearance refers to the act of refraining from exercising a right or claim, which can serve as valid consideration in a contract.</p> Signup and view all the answers

<p>Currie v Misa defines consideration as a valuable exchange that may involve a right, interest, profit, or a detriment suffered by one party.</p> Signup and view all the answers

<p>Executed consideration occurs when the promises in a contract are fulfilled and the agreed-upon actions have been completed.</p> Signup and view all the answers

<p>Intention is crucial as it determines the parties' commitment to enter into a legally binding agreement, alongside the presence of consideration.</p> Signup and view all the answers

<p>'Valuable consideration' implies that the exchanged value in a contract has significance and sufficiency recognized by law.</p> Signup and view all the answers

<p>The case of Stilk v Myrick illustrates that a promise based on pre-existing duties may not be considered valid consideration.</p> Signup and view all the answers

<p>Pinnel's Case establishes that part payment of a debt does not constitute valid consideration for discharging the entire debt.</p> Signup and view all the answers

<p>Key cases provide judicial interpretations that clarify the principles surrounding consideration and its application in contracts.</p> Signup and view all the answers

<p>Valuable consideration refers to something given or promised that has worth, even if it isn't of equal value to what is received.</p> Signup and view all the answers

<p>Consideration can take the form of a service provided or an act performed that benefits the other party in the agreement.</p> Signup and view all the answers

<p>Consideration must be new because a pre-existing duty does not provide a fresh incentive to perform, making the promise unenforceable.</p> Signup and view all the answers

<p>'Something for something' signifies that both parties must exchange something of value for a contract to be valid.</p> Signup and view all the answers

<p>In order to change or end a contract, parties usually need to provide further consideration.</p> Signup and view all the answers

<p>Giving up a right can qualify as consideration when it results in a benefit to the other party, as it shows a genuine exchange.</p> Signup and view all the answers

<p>'The Rule in Pinnel’s Case' asserts that part payment of a debt is not sufficient consideration to discharge the entire debt unless accompanied by something additional.</p> Signup and view all the answers

<p>No, past consideration cannot be used to support a new contract, as the consideration must be valid at the time the contract is made.</p> Signup and view all the answers

<p>Variation refers to a change in the work required under a contract, typically involving additional work in exchange for extra payment.</p> Signup and view all the answers

<p>A gratuitous promise is a promise made without consideration, thus lacking enforceability in a legal contract.</p> Signup and view all the answers

<p>A builder may claim that requested changes are variations to charge extra fees.</p> Signup and view all the answers

<p>Clients can argue that the work requested was already included in the pre-existing duty within the contract.</p> Signup and view all the answers

<p>'Stilk v Myrick' establishes that performing a pre-existing duty cannot constitute valid consideration for a new promise.</p> Signup and view all the answers

<p>Variations can be contentious due to disputes over whether the changes are genuinely 'extra' or part of the initial agreement.</p> Signup and view all the answers

<p>These cases help define the importance of distinguishing between variations and pre-existing duties in contract claims.</p> Signup and view all the answers

<p>It indicates that the parties do not intend to create a legally enforceable agreement, only a moral obligation.</p> Signup and view all the answers

<p>Consideration is crucial in ensuring that any modifications to a contract are supported by new or sufficient value.</p> Signup and view all the answers

<p>Clients often struggle to prove that requested work is not a variation but rather part of the originally promised scope.</p> Signup and view all the answers

<p>Intention reflects the parties' desire to be legally bound by the terms of the contract.</p> Signup and view all the answers

<p>It addresses the presumption of intention in commercial agreements, influencing how courts interpret contractual obligations.</p> Signup and view all the answers