Law of Contract: Consideration

Vocabulary flashcards covering key concepts, rules, and landmark cases related to consideration in contract law.

Consideration

In contract law, something of value given by one party to another in exchange for goods, services, or a promise; essential for enforceability.

Valuable consideration

A concept from Currie v Misa and Pollock; includes a right, interest, benefit, or forbearance or detriment provided in exchange for a promise.

Forbearance

Refraining from doing something; can count as consideration.

Promise

A vow or assurance that binds if supported by consideration; can be for performance or forbearance.

Currie v Misa

Case defining valuable consideration as something of value, including forbearance, detriment, or benefit.

Pollock

Definition: an act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought.

Past consideration

Something done before the promise; not valid consideration.

Lampleigh v Braithwaite

Exception to past consideration: act done at promisor's request, understood as reward, and enforceable if promised in advance.

Promisee

The party to whom a promise is made; the source of consideration must move from this party.

Move from the promisee

The principle that consideration must originate from the promisee, not the promisor.

Tweddle v Atkinson

Rule that consideration must move from the promisee; a groom could not enforce a father-in-law’s promise due to lack of consideration.

Legally sufficient

Consideration must have some value in the eyes of the law; it need not be economically adequate.

Adequacy

The amount of consideration need not be equal in value to the promise; the law does not require perfect equivalence.

Thomas v Thomas

1842 case: paying £1 rent and maintaining the house was good consideration, even though not commercially adequate.

Rent

Payment for use of property; used as an example of valid consideration in Thomas v Thomas.

Chappell v Nestlé & Co. Ltd

1960 case: chocolate wrappers can constitute valid consideration; Nestlé benefited from increased sales; delivering on a promotion may be binding.

Existing legal duty

Performing a duty one is already legally obligated to perform generally does not amount to new consideration.

Stilk v Myrick

Case where promises of extra pay to crew were not binding because it was a pre-existing contractual duty.

Hartley v Ponsonby

Crew depletion created new duties; extra pay was enforceable as new consideration for the captain’s promise.

Sufficiency

Adequacy of consideration in law; there must be some value, but not necessarily equal to the value of what is promised.