A more recent version of these Consideration notes – written by Cambridge/Bpp/College Of Law students – is available here.
The following is a more accessble plain text extract of the PDF sample above, taken from our GDL Contract Law Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Classic definition of valuable consideration in Currie v Misa
Pollock's definition: 'an act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought, and the promise thus given for value is enforceable': adopted by HL in Dunlop v Selfridge
Executory consideration: parties make promises to do something in the future after the contract is formed: a bilateral contract usually involves executory consideration, e.g. sale of goods
Executed consideration: Where consideration has already been performed at the time of the formation of the contract
1. Consideration must not be past
Consideration generally cannot happen prior to the promise to pay: Eastwood v Kenyon
Roscorla v Thomas: C bought a horse and after the purchase the D promised the C that the horse was 'sound and free from vice' - the horse turned out to be vicious but D was not bound as there had been no consideration to support the promise: the sale itself was not valuable consideration as it was completed prior to the promise being given
Exceptions: Where past consideration was given at the promisor's request and it was understood that payment would be made - o
Lampleigh v Braithwait: B had killed a man and asked L to go to King to obtain a pardon: L went to great lengths to do so and then B promised to pay PS100. Held: that L's actions were good consideration as there was an implied understanding that payment would be made and the later promise was simply an express confirmation to fix the price
Implication that there was an understanding that payment would be made it more likely in commercial contexts: Re Casey's patents - past service raises implication that at the time it was rendered it was to be paid for
Pao On v Lau Yiu Long: PC - an act done before the giving of promise can be consideration IF:
1. Done at promisor's request 1
Buy the full version of these notes or essay plans and more in our GDL Contract Law Notes.