Topic 4 - Consideration (2)

What are the three essential ingredients required to vary an existing contract?

• Offer, Acceptance, Legality

• Offer, Acceptance, Consideration

• Offer, Consideration, Legality

• Consideration, Legality, Capacity

In the case of Stilk v Myrick, what was the key legal principle established?

• A promise to pay extra is enforceable if it provides a practical benefit

• A contract cannot be varied without fresh consideration

• A contract variation requires only mutual agreement

• Consideration is unnecessary for contract variation

Which case introduced the principle that a practical benefit could be valid consideration?

• Pinnel’s Case

• Williams v Roffey Bros & Nicholls

• D & C Builders Ltd v Rees

• Machirus Properties Ltd v Power Sports World

In Williams v Roffey Bros & Nicholls, why was the promise to pay extra held to be enforceable?

• Because it was made under duress

• Because the subcontractor had performed more than his original obligation

• Because the head contractor received a practical benefit

• Because the agreement was made in writing

According to Pinnel’s Case, which of the following is NOT valid consideration for part payment of a debt?

• Paying before the due date

• Offering a different item (e.g., a horse)

• Paying a lesser amount on the due date

• Payment by a third party

What is the significance of the rule in Pinnel’s Case?

• Part payment of a debt is not valid consideration unless an exception applies

• Consideration is unnecessary for varying contracts

• A contract is only enforceable if it is in writing

• A contract variation must always involve a deed

Which of the following is NOT an exception to Pinnel’s Rule?

• Payment made before the due date

• Part payment accepted under a deed

• Payment by a third party
  

• 
  Payment of the full amount by the debtor

Under the Property Law Act 2007, what is required for the discharge of a debt by part payment?

• A verbal agreement between the creditor and debtor

• A written acknowledgment by the creditor

• A witness to the agreement

• Court approval

In D & C Builders Ltd v Rees, why was the part payment of the debt not valid consideration?

• The payment was made by cheque

• The debtor paid before the due date

• The debtor made an alternative offer (e.g., a horse)

• The creditor accepted the payment under duress

Which of the following best describes "Accord and Satisfaction"?

• A way of settling a dispute through mutual agreement and consideration

• A legal doctrine requiring written contracts

• A form of economic duress

• A type of deed used in contract law