Consideration

SomeissuesconcerningconsiderationContentsTheFunctionofConsiderationTheDefinitionofConsiderationTheCategoriesofConsiderationTheRulesofConsiderationTheSituationsofNoConsiderationPromissoryestoppelTheFunctionofConsideration•Apromiseisnotbindingasacontractunlessiteithermadeinadeedorsupportedbysomeconsideration.•promiseswithconsideration=enforceableIfthereisnoconsideration,e.g.agiftfornothing,cannotbeenforcedinEnglishLaw.•Theessenceofacontractisanexchange.Lawofcontractistoprotectanexchangeratherthanapromisewithnothingasreturn.TheDefinitionofConsideration•Avaluableconsiderationinsenseofthelawmayconsisteitherinsomeright,interestorbenefitaccruingtooneparty,orsomeforbearance,detriment,lossorresponsibilitygiven,sufferedorundertakenbytheother.•Considerationisdetrimentorbenefit.•Inbrief:TheCategoriesofConsiderationThereare3maincategoriesofconsideration:(1)Apromiseforapromise(2)Anactforapromise(3)ForbearanceTheRulesofconsiderationThereareanumberofcomplicatedrulesgoverningconsideration:(1)Considerationmustbelegal;(2)Considerationmustmovefromtheofferee-butnotnecessarilytotheofferor;(3)Considerationneednotbeadequate-butmustbesufficient;(4)Considerationmustnotbeillusory;Considerationmustbepossible;(5)Considerationmustbecurrent-itcannotbepast;(6)Thirdpartyobligationisgoodconsideration;(7)Performanceofapubliclawdutyisnotgoodconsideration.ConsiderationmustberecognizedbylawThereisnoconsiderationifitis:(1).Dutyimposedbythegenerallaw(2).Dutyimposedbyacontactwiththesameparty(3).Pastconsideration(4).PartPaymentsofDebtsTheSituationsofNoConsiderationDutyimposedbythegenerallaw•Dutiesimposedbythegenerallawincludenottakingpartinacrimeorpromisingtoappearincourtafterbeingsubpoenaed.•CollinsvGodefroy(1831)Hereawitnessinacourtcasewaspromisedmoneyiftheywenttocourtandgaveevidence.Thecourtrequiredthemtogiveevidenceandsothepromiseofmoneywasnotenforceable.(policyreasonsaswellhereExceptionstoDutyimposedbythegenerallaw•Apersonprovidesconsideration,ifhe/shedoesorpromisetodomorethanwhatisrequiredbylaw.•GlabrookvGlamorgan(1925)Themine-ownersfearedviolencefromstrikersaskedandpromisedtopayforthepoliceauthoritysendingmorepolicementhanusualtoprotectthemine.Theyagreedthattherewouldbemore70policemenfor£2200.Themine-ownerrefusedtopaythepoliceauthorityaftertheservice.Hearguedthatitwasthepolice'slegaldutytoassurethesecurity.•Itwasheldthatthepolicehadprovidedconsiderationforthispromisebygivingextraprotection,andthataccordinglythepromisewasenforceable.•Whatdoesthismean?•Ifyoulegallyhavetodosomething,thenitisunlikelythatapromisetopayyoufordoingitwillbeenforceable.•So,apromisetopaythepolicesomemoneyiftheywatchyourbusinesscarefullywillNOTbeenforceableUNLESStheydomorethanusual(forexample,thepoliceforcegetpaidforattendingfootballmatchestokeepthepeace)Dutyimposedbyacontactwiththesameparty•AalreadymakesacontractwithB.Acannotaskformorepaymentfordoingthesameworkrequiredinthecontract.•StilkvMeyrick(1809)Twosailorsdesertedtheirship;thecaptainpromisedtherestofcrewwagesiftheywouldsailtheshipbackhome.Itwasheldthatthecrewwerealreadyboundbytheircontracttomeetthenormalemergenciesofthevoyageandweredoingnomorethantheiroriginalcontractualdutyinworkingtheshiphome.Thepromisetohigherpaymentwerenotbinding.ExceptionstoDutyimposedbyacontactwiththesameparty•AalreadymakesacontractwithB,AcangetextramoneybydoingthesameworkinginthecontractifBgetssomenewbenefitoravoidaloss.•HartleyV.Ponsonby--wherethesailors’voyagehadturnedouttobemoredangerousthanexpected,therewasextraconsiderationprovidedforthepromisetopaymoremoney.•WilliamsvRoffeyBros&Nicholls(1990)•Whatdoesthismean?•IfyouarealreadyinacontracttoprovidegoodsorservicesANDyouarethenofferedmoremoneytomakesureitiscompletedontime,YOUMAYNOTbeabletoenforcethepromiseformoremoney.•UNLESSyoucanshowthattheothersidegetsabenefitfromthisORyouaredoingmore(perhapsquickerorbetterthaninyourcontract)Pastconsideration•(i)Generally,apromisecannotbebaseduponconsiderationthatwasprovidedbeforethepromisewasmade.•EastwoodvKenyon•ReMcArdle(1951).•(ⅱ)ifthereisanexistingcontractandonepartymakesafurtherpromise,nocontractwillarise.Evenifsuchpromisedirectlyrelatedtothepreviousbargain.Itwillbeheldtohavebeenmadeuponpastconsideration.•RoscorlavThomas1842•EastwoodvKenyon•Facts:theguardianofayounggirlraisedaloantoeducatethegirlandtoimprovehermarriageprospects.Afterhermarriage,herhusbandpromisedtopayofftheloan.•Itwasheldthattheguardiancouldnotenforcethepromiseastakingouttheloantoraiseandeducatethegirlwaspastconsideration,becauseitwascompletedbeforethehusbandpromisedtorepayit.•ReMcArdle(1951)•Facts：Awifeandherthreegrown-upchildrenlivedtogetherinahouse.Thewifeofoneofthechildrendidsomedecoratingandlaterthechildrenpromisedtopayher£488andtheysignedadocumenttothiseffect.•Itwasheldthatthepromisewasunenforceableasalltheworkhadbeendonebeforethepromisewasmadeandwasthereforepastconsideration.•RoscorlavThomas1842•Facts:Roscorlaboughtahorsefor£30fromThomas.AfterthepurchasewascompletedRoscorlasoughtanassurancefromThomasthatthehorsewasnotvicious.Thomasgavethisassurance-thehorsewashealthy.Theho