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Requirements For Consideration Notes

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Requirements for Consideration The basic idea

Chen Wishart: In order to acquire the right to enforce undertaking (promise) o A party must undertake to give/actually give something stipulated by other as price of undertaking (consideration) Other requirements

The consideration of the promisee must move from the promisee, but need not move to the promisor o It could move from the promisee to a 3 rd party instead and still be good consideration
? But under the Privity rule, that 3 rd party would not be able to enforce the giving of the consideration unless he fell into C(R3P) A 1999

Consideration must be requested by the promisor o Smith: All that is necessary is that D should, expressly or impliedly, ask for something in return for his promise
? If he gets what he's asked for = good consideration.
? BUT must have been desired by the promisor not just relied upon as being sufficient in return for the promise

E.g. Combe v Combe [1951]: Husband promised to pay ex-wife PS100 a year upon their divorce. He stopped. Wife sought to enforce the promise b/c said she had given consideration by not suing for maintenance. o CoA: not enforceable b/c husband had not requested that she not sue for maintenance
? Thus her forbearance (consideration) RESULTED FROM his promise to pay
? BUT was NOT GIVEN IN RETURN for it o Chen Wishart: but courts will sometimes imply a request for forbearance as being consideration - shows that courts have considerable leeway in deciding whether or not to imply a request by the promisor
? and so vest the promisee's reliance on the promisor with the label of consideration (may depend on context).
? Alliance Bank v Broom [1864]: B undertook to provide some security for its debt to A. When A sued B for the debt, B claimed A gave no consideration for it

Held that b/c B's request, A had not sued o Although B had not expressly requested A to forbear, the court implied such a request though B attempting to rack up some security.


Must result from the promise - o Must support the promise
? Satisfaction of a condition only consideration if it was requested as a price of the promise by the promisor

Chappel v Nestle o E.g. 3 wrappers only valuable if they were those advertising special offer, were Nestle's chocolate bars and were with 1s 6d postage for purpose of getting record

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