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CONSIDERATION
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
In short … ,[object Object],Benefit to PROMISOR Detriment to  PROMISSEE
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Kinds of Consideration
Examples of Past Consideration ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exception to the Past-Consideration rule ,[object Object],[object Object],[object Object]
Lampleigh v Braithwaite (1615) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Lord Scarman in  Pao On v Lau Yiu Long (1980)   laid down conditions : ,[object Object],[object Object],[object Object]
Consideration must move from the promisee Only a person who has provided consideration  promise can enforce a promise. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Consideration can be a promise not to sue
Consideration must be  sufficient  but  need not be  adequate Mountford v Scott (1975) Paid $1 for an option to purchase a house – deem good consideration Chappell v Nestle (1960) Three wrappers from the defendant’s chocolate - deem good consideration
What is deemed “sufficient”? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Duty under a contract with the same party If Promisee performs existing contractual duty owed to  Promisor this is not sufficient consideration.   Stilk v Myrick 2 sailors deserted ship, captain promised the rest of crew extra  wages if they sail ship back home.  Held  : crew already bound by contract to meet normal  emergencies of voyage and were doing no more than their  original contractual duty in working ship home. Hartley v Ponsonby nearly half the crew left. Sailors exceeded their  existing  contractual duty.
[object Object],[object Object],[object Object],Consideration delivered to a 3rd  party are good consideration
[object Object],[object Object],[object Object],Consideration for part payment of debt
Exceptions  to Pinnel’s case ,[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],The Doctrine of Promissory Estoppel
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
When debtor can only seek protection under the Doctrine of Promissory Estoppel ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Exercise ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object]

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Consideration in English Contract Law

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  • 12. Consideration must be sufficient but need not be adequate Mountford v Scott (1975) Paid $1 for an option to purchase a house – deem good consideration Chappell v Nestle (1960) Three wrappers from the defendant’s chocolate - deem good consideration
  • 13.
  • 14. Duty under a contract with the same party If Promisee performs existing contractual duty owed to Promisor this is not sufficient consideration. Stilk v Myrick 2 sailors deserted ship, captain promised the rest of crew extra wages if they sail ship back home. Held : crew already bound by contract to meet normal emergencies of voyage and were doing no more than their original contractual duty in working ship home. Hartley v Ponsonby nearly half the crew left. Sailors exceeded their existing contractual duty.
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