Contract Law: Good Consideration

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What is the key distinction in the three-party scenario where the mere performance of a pre-existing duty amounts to good consideration?

The pre-existing duty derives from a contract with a third party (correct)

The pre-existing duty is owed to the same party

The pre-existing duty is owed to the state

The pre-existing duty derives from a contract with the same party

In the scenario where the pre-existing duty derives from a contract with a subsequent promisor, how many parties are involved?

Four parties

More than four parties

Two parties (correct)

Three parties

What is the significance of the Salk v Myrick case in the context of consideration and pre-existing duties?

It established that the performance of a pre-existing duty is always good consideration

It highlighted the distinction between two-party and three-party scenarios (correct)

It established that the performance of a pre-existing duty is never good consideration

It is irrelevant to the discussion of consideration and pre-existing duties

What is the key difference between the previous scenario where the performance of a pre-existing duty did not amount to good consideration, and the three-party scenario?

The source of the pre-existing duty Signup and view all the answers

What is the effect of the stevedores' promise to perform the act of unloading the goods in the three-party scenario?

It provides good consideration for the promise Signup and view all the answers

What constitutes good consideration in the context of a contractual agreement with a third party?

A promise to perform an existing obligation owed to a third party. Signup and view all the answers

What is an example of an existing obligation owed to a third party that can provide good consideration?

The unloading of cargo by a firm of stevedores. Signup and view all the answers

What is the orthodox test in the context of consideration?

The fulfilling of a pre-existing duty. Signup and view all the answers

What is confirmed by the Privy Council in Pao On v Lau Yiu Long (1980)?

The promise to perform an existing obligation owed to a third party can constitute good consideration. Signup and view all the answers

What is the relevant precedent in determining whether a threat to breach a contract constitutes duress?

B & S Contractors and Design Ltd v Victor Green Publications Ltd Signup and view all the answers

What is the key distinction between Ahmed's situation and the facts in Williams v Roffey?

The type of benefit received Signup and view all the answers

What is the outcome if a contract is found to be voidable due to duress?

The contract is voidable at the option of the injured party Signup and view all the answers

What is the primary obligation of Chay in his contract with Des Pot?

To provide a 50-metre luxury power cruiser for rent Signup and view all the answers

What is the primary purpose of the doctrine of consideration in English courts?

To decide whether promises are enforceable Signup and view all the answers

In a contractual agreement, what is required for an existing obligation to be considered good consideration?

The obligation must be owed to a third party Signup and view all the answers

What is the significance of the performance of an existing obligation in a contractual agreement?

It can be good consideration if owed to a third party Signup and view all the answers

What is essential for a promise to be enforceable in a contractual agreement?

A promise must provide some benefit or detriment Signup and view all the answers

What is the key factor in determining whether an employee's extra work is good consideration?

Whether the work is beyond the employee's normal obligations Signup and view all the answers

What is the consideration provided by A to C in the three-party scenario?

The liability for breach of contract to both B and C Signup and view all the answers

What is the general rule in relation to the variation of existing obligations?

The performance of an existing obligation is not sufficient consideration Signup and view all the answers

Why is it difficult to employ the principle of variation of existing obligations as consideration?

Because it is often unclear in its application Signup and view all the answers

What is the relationship between A and B in the three-party scenario?

A promises to teach, and B promises to pay £X Signup and view all the answers

What is the key aspect of consideration in the three-party scenario?

The detriment of being open to liability for breach of contract Signup and view all the answers

What is the significance of the MWB Business Exchange Ltd v Rock Advertising Ltd case in relation to consideration?

It held that a promise to do less can constitute good consideration in certain circumstances. Signup and view all the answers

In what way can a promise to do less be functionally equivalent to an agreement to accept a lesser sum?

By releasing the debtor from a portion of the original debt. Signup and view all the answers

What was the outcome of the Court of Appeal's decision in the MWB case?

The appeal to the Supreme Court was pending at the time. Signup and view all the answers

What is the key distinction in the MWB case in relation to consideration?

A promise to do less can constitute good consideration. Signup and view all the answers

What was the practical benefit to the landowner in the MWB case?

The landowner recovered some of the arrears immediately. Signup and view all the answers

What is the primary purpose of consideration in English contract law?

To decide whether an agreement should be legally enforceable Signup and view all the answers

What is a characteristic of a legally binding promise?

It is supported by consideration Signup and view all the answers

What is the importance of mutuality in a contractual agreement?

It requires something to be given by each side Signup and view all the answers

What would make a promise to make a gift legally binding?

The presence of consideration Signup and view all the answers

What is the flow of consideration in a binding agreement?

From A to B, and from B to A Signup and view all the answers

What is the role of consideration in indicating the intention to create legal relations?

It is an important indication of the intention to create legal relations Signup and view all the answers

What is the significance of the doctrine of consideration in English contract law?

It is a crucial element in deciding whether an agreement is legally enforceable Signup and view all the answers

What is the relationship between consideration and contractual agreements?

Consideration is essential for a promise to be binding as a contract Signup and view all the answers

What is the impact of recent developments on the doctrine of consideration?

It has been applied with increased flexibility Signup and view all the answers

What is the key distinction between a promise to make a gift and a binding agreement?