LAWS 203 - Consideration.

Front

What is the fourth requirement of contract formation?

Back

Consideration means that both parties need to contribute something of value in the eyes of the law, on order to create an enforceable contract.

Front

Does a gift have valid consideration?Why/Why not?

Back

A gift does not have valid consideration as it is one-sided.

Front

Define the benefit-detriment approach.

Back

The benefit detriment approach states that in order for there to be valid consideration, there must be a benefit to the promisor or a detriment to the promisee.

Front

Can consideration be just a detriment?

Back

Yes.

Front

is the price for a promise is valid consideration.

Back

Yes.

Front

Is a promise to perform, good consideration?

Back

Yes.

Front

What did the court hold in the case of Hamer v Sidway?

Back

That the promise or agreement to not do something is valid consideration.

Front

Explain the concept of 'Forbearing to sue' and whether or not it is valid consideration?

Back

Forbearence to sue means promising not to sue someone in an agreement, and this has valid consideration.

Front

What is a problem with forbearing to sue someone in terms of consideration.

Back

If the promisor's lawsuit would not be succesful in court, then that raises an issue of valid consideration, as what is the detriment to the promisor in such a case?!

Front

Describe a type of term within a contract that does not have valid consideration, using case law.

Back

In the case of Clyne, there was a discretionary promise term in the contract which stated that if the purchaser is unsatisfied with the transaction, then they can 'pull out' of the agreement. This disatisfaction is entirley on the discretion of the purchaser, instead of the reasonable man.