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Questions and Answers
What is the primary role of consideration in Irish contract law?
What is the primary role of consideration in Irish contract law?
Which type of consideration involves a promise to perform an act in the future?
Which type of consideration involves a promise to perform an act in the future?
Why is past consideration not recognized as valid in Irish law?
Why is past consideration not recognized as valid in Irish law?
What must be true for consideration to be considered adequate under Irish contract law?
What must be true for consideration to be considered adequate under Irish contract law?
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Which statement is true regarding the adequacy of consideration in Irish contracts?
Which statement is true regarding the adequacy of consideration in Irish contracts?
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What is the principle behind promissory estoppel?
What is the principle behind promissory estoppel?
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Which of the following scenarios may indicate a lack of valid consideration?
Which of the following scenarios may indicate a lack of valid consideration?
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Why is consideration important in contract law?
Why is consideration important in contract law?
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What type of promise is generally not enforceable due to lack of consideration?
What type of promise is generally not enforceable due to lack of consideration?
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What can potentially invalidate an agreement in contract law?
What can potentially invalidate an agreement in contract law?
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Flashcards
Consideration in Irish Contract Law
Consideration in Irish Contract Law
The reciprocal exchange of value necessary to validate an agreement in Irish contract law.
Executory Consideration
Executory Consideration
A promise to perform an act in the future, a common type of consideration.
Executed Consideration
Executed Consideration
An act already performed; one party already fulfilled their part of the bargain.
Past Consideration
Past Consideration
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Adequacy of Consideration
Adequacy of Consideration
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Promissory Estoppel
Promissory Estoppel
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Consideration
Consideration
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Lack of Consideration
Lack of Consideration
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Contract Enforceability
Contract Enforceability
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Study Notes
Introduction to Consideration in Irish Contract Law
- Consideration is a crucial element in Irish contract law, acting as a reciprocal exchange between parties that validates the agreement.
- Without consideration, an agreement lacks enforceability.
- A promise to do something or to refrain from doing something is only binding if supported by consideration.
Definition of Consideration
- Consideration is the price of a promise. It's the mutual exchange of benefits (or mutual detriment) between parties.
- A benefit must be conferred upon one party, and a detriment must be suffered by the other.
- "Detriment" can be defined broadly as giving up something of value, undertaking an obligation, or giving up a legal right.
- The benefit or detriment need not be equal or have financial value.
- There must be a reciprocal exchange, and a one-sided promise generally isn't enforceable.
Types of Consideration
- Executory Consideration: This is a promise to perform an act in the future. It is a common type of consideration, such as in a contract to deliver goods in the future.
- Executed consideration: This is where an act is performed. An example is where one party already performs their side of the bargain before the exchange.
- Past Consideration: This is not good consideration in Irish law. Past consideration cannot support a present promise. A promise made in respect of an act previously undertaken is not recognized as valid consideration; it must be current or contemporaneous with the promise.
- Adequacy of Consideration: Courts generally do not concern themselves with the adequacy of consideration in Irish contracts. The law does not require the exchange to be equal in value. The parties decide their own valuations of the benefits.
Key Elements of Valid Consideration
- Must move from the promisee; a third party's consideration is insufficient. Consideration must be provided by the party who is claiming the enforcement of the promise.
- Must be sufficient, not necessarily adequate. The law only needs to meet a threshold of being "some value" in the eyes of the law, and parties can have their own subjective evaluation.
- Must be real and genuine. Consideration must be something of value in the eyes of the law and not merely a formality. This often relates to the issue of duress, undue influence, fraud, or unconscionability.
- Must be intended to be enforceable. A promise to do something that isn't sufficiently binding in the eyes of the law doesn't count.
Exceptions to the Requirement of Consideration
- Promissory Estoppel: This doctrine can prevent a party from going back on a promise even absent consideration in specific circumstances. Promissory estoppel prevents a party from going back on a clearly intended commitment when one party has acted upon that promise to their detriment.
Practical Implications of Consideration
- Without consideration, an agreement lacks the binding legal commitment necessary for enforcement.
- The principle of consideration ensures that promises made in contracts are supported by a reciprocal exchange that carries weight under law.
- The practical application of consideration in Irish contract law requires careful evaluation of the exchange between parties to determine if the requirements are fulfilled.
Situations where consideration may be lacking.
- Agreements lacking mutual benefit or detriment. For example, if one party promises to do something which they are already obligated to do, this may not be considered valid consideration.
- Gifts or gratuitous promises. A promise to make a gift is not generally enforceable due to the lack of consideration from the receiving party.
- Promises based on past consideration. This kind of consideration is not sufficient to support a subsequent promise.
- Agreements induced by duress, undue influence or fraud. These situations may invalidate the agreement itself.
Conclusion
- Consideration remains a fundamental principle in Irish contract law. Understanding its nuances is essential for properly analyzing and structuring agreements to ensure their enforceability.
- Consideration often involves a complex evaluative approach to determine whether the required exchange actually exists and is legally recognized.
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Description
This quiz explores the concept of consideration in Irish contract law, highlighting its importance in validating agreements between parties. It covers the definition, types, and conditions under which consideration must exist for a promise to be enforceable. Engage with key principles that underpin contract enforceability in an Irish context.
