The rules of consideration

Overview

Rule that consideration must not be past and exception for an act done at the promisor's request.

What you need to know

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Questions from this subtopic

Each one with the model answer underneath.

1. 1

   Define consideration.

   Model answer

   Currie v Misa (1875) defined consideration as a benefit to one party or a detriment suffered by the other. Consideration is the element of exchange that makes a promise enforceable.

2. 2

   How did Lord Dunedin describe consideration in Dunlop Pneumatic Tyre Co v Selfridge [1915]?

   Model answer

   Lord Dunedin described consideration as the price for which the promise of the other is bought. The definition treats a contract as a bargain rather than a gift.

3. 3

   Why is a gratuitous promise unenforceable?

   Model answer

   A gratuitous promise is unsupported by consideration and so creates no contract. A promise of that kind is enforceable only if it is made by deed.

4. 4

   State the rule that consideration must not be past.

   Model answer

   Re McArdle [1951] held that work already completed cannot be consideration for a later promise to pay. The promise came after the improvements had been carried out.

5. 5

   Which case involved a promise about a horse given after the sale?

   Model answer

   Roscorla v Thomas (1842) concerned a promise that a horse was sound made after the sale was complete. The promise was unsupported because the consideration had already passed.

6. 6

   What is the exception for an act done at the promisor's request?

   Model answer

   Lampleigh v Braithwait (1615) allowed recovery where the act was done at the promisor's request and payment was always expected. The later promise simply fixed the amount.

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