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Contract: Formation

Consideration and existing duties

  • 3 things to know
  • A2 Units 3 and 4

Overview

Rule that consideration must move from the promisee and rule about past consideration and the case that illustrates it.

What you need to know

Answer each one before you reveal it.

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Numbers

State the rule about past consideration and the case that illustrates it.

Key term

Distinguish executory consideration from executed consideration.

Key term

What exception to the past consideration rule comes from Lampleigh v Braithwait (1615)?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    How was consideration defined in Currie v Misa (1875)?

    Model answer

    It was defined as some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.

  2. 2

    How was consideration described in Dunlop Pneumatic Tyre v Selfridge (1915)?

    Model answer

    It was described as the price for which the promise of the other party is bought, so that a promise given for value is enforceable.

  3. 3

    Distinguish executory consideration from executed consideration.

    Model answer

    Executory consideration is a promise still to be performed at the time the contract is made, whereas executed consideration is an act already carried out in return for the other party's promise.

  4. 4

    Explain the rule that consideration must move from the promisee.

    Model answer

    A person can enforce a promise only if that person provided the consideration for it, which is why the son in law in Tweddle v Atkinson (1861) could not sue on a promise made in his favour by others.

  5. 5

    What did Thomas v Thomas (1842) decide about the value of consideration?

    Model answer

    It decided that consideration must be sufficient but need not be adequate, so a ground rent of one pound a year was valid consideration while the executors' respect for the testator's wishes was mere motive and was not.

  6. 6

    What did Chappell and Co v Nestlé (1960) decide about items of trivial value?

    Model answer

    It decided that three chocolate wrappers formed part of the consideration for the record even though they were thrown away on receipt, because the parties were free to fix the price and the wrappers had commercial value in promoting sales.

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Pecuniary loss is financial and measurable.
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