...the case of Currie v Misa is that consideration may consist either some detriment suffered by one party or some benefit accruing to the other. Consideration is important to a valid contract because an agreement without a valid consideration is not enforceable. The doctrine of consideration is a very uncertain and incoherent area in the law of contract. The doctrine of consideration involves loads of case law that is contradictory with each other, and is subject to a great deal of debate and argument. One area of difficulty is that it is not clear when a person’s performance of, or a promise to perform, a pre-existing obligation can constitute good consideration. Generally the performance of an existing contractual obligation owed to the same party making new promise does not constitute good consideration. The old case of Stilk v Myrick had been established as the legal principle where the performance of an existing contractual duty possibly will not be good consideration for a new promise from the party to whom...
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...Legal Issue 1: Donald v Scrooge A. Case Facts * Scrooge engages Donald Contractors to build a pond in his garden. The contract price is $10,000 and the pond due to be completed on 1st September 2012. * Donald deliberately underestimated the cost and quoted a very low price * Unexpectedly, Donald’s sole employee fell sick and is unable to work for a month The price of materials also increases dramatically * Donald approaches Scrooge and request for an extra $5000 otherwise the pond will not be completed on time * Scrooge reluctantly agrees as his fishes were scheduled to be delivered on 2nd September 2012 and for various reasons it cannot be postponed Here, we will determine if the $5000 requested by Donald is a valid consideration or there is a breach of contract by Donald. B. General Rule 1. Consideration must be sufficient Consideration must be sufficient, defined as something having value in the eyes of the law. Where there is no benefit to the promisor or detriment to the promisee, no consideration is made. The rule was laid in the case Thomas v Thomas (1842). The court ruled that motive should not be confused with consideration and giving the house out of gratitude is not considered sufficient consideration. The rule later applied in White v Bluett (1853). The court held that the father (defendant) was not bound by his promise. There was no consideration for the father’s promise. The intangible benefit of feeling relieved...
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...Salford Law - Salford Business School Assessment 1 Module leader: Mr. Donal Loftus Module title &module code: | Contract Law 35587 | Level 4Erasmus program | Title of assignment | In Contract law, how far do you agree with the claim that the traditional rules of consideration have been relaxed in order to maintain effective business relationships? | Programmes undertaking the assignment | LLB (Hons) Law | Pupil | Juan López MartínezID: 004426895 | Hand-in date | Friday November 06th 2015 | INTRODUCTION First of all, the definition of Consideration is going to be stated. Consideration is an essential fact in the elaboration of a contract. It may consist of a promise to perform a desired action or a vow to abstain from doing any act that one has the legal right to do. A bilateral contract is an agreement by which both parties exchange mutual promises, every promise is considered to be sufficient consideration for the other. On the other hand, a unilateral contract is an agreement by which one party makes a promise in base of obtaining something in return from the other part. This ‘something in return’ is the consideration of the promise, and the promise is the consideration of the performance. Namely, this is the promise of a promise or promise made in return for a particular action. There’s going to be consideration if the price is being offered to the other party. An Orthodox way to define consideration is based on the idea of reciprocity, whereby...
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...Nick vs John This case involves an analysis of sufficiency of consideration regarding the performance of an existing contractual duty. There is no dispute with regard to the initial contract between the two parties; the key issue here is whether John can claim the bonus of $1000 from Nick. Provided the consideration has ‘something of value in the eye of the law’ to support the bargain, the courts will not concern themselves with its adequacy and the relative values exchanged. Therefore, it can be argued that if a party does, or promises to do something, which he is already bound to do, he then provides no consideration for the promise. In Stilk v Myrick, two sailors deserted during a voyage, the master promising to apportion the deserters’ wages amongst the remaining sailors if they would sail the ship home safely. The courts held that the claim for additional wages must fail since no consideration had been provided in performing the existing contractual obligation which was to get the ship home. On this basis, it can be argued that John has performed no more than his contractual duty and Consequently;, he has no sufficient consideration for the bonus money. However, a more recent “refinement and limitation” to the rule in Stilk made In Williams v Roffey Bro & Nicholls(Contractors) Ltd , has fundamentally altered our perception of the doctrine of consideration. In this case, the defendant was a firm of builders contracted to refurbish blocks of flats, the carpentry...
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...Formation of a Contract 3 Consideration and Promissory Estoppel 1. CONSIDERATION In general, agreements or promises are contractually binding in English law only if supported by consideration. The requirement of consideration means that each party must receive or be promised something in return for giving or promising something. Consideration is, therefore, the legal description of the element of exchange and its practical effect is to ensure that gratuitous promises are not binding whereas bargains are. So if A promises B £1000, B cannot enforce that promise because B has provided no consideration (nothing in exchange) for it. It is traditional to define consideration as a benefit to the promisor or a detriment to the promisee. So in Currie v Misa (1875) LR 10 Ex 153, 162 Lush J stated, ‘A valuable consideration, in the sense of the law, may consist either in some right, interest, profit, or benefit accruing to the one party, or some forbearance, detriment, loss, or responsibility, given, suffered, or undertaken by the other.’ This definition can be misleading unless one emphasises, in line with the need for an exchange, that the detriment to the promisee must be requested by the promisor. So if A promises B £1000 and B, in reliance on receiving that money, buys a car, that may constitute detrimental reliance by B but B has not thereby provided any consideration for A’s promise. In contrast, if A promises B £1000 in return for B’s car (ie A requests the car), B’s transfer of the car...
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...Q1 a) Whether Carmen can sue Martin for breach of contract No, Carmen cannot sue Martin for breach of contract. Martin's words to Carmen that ‘This T-shirt suits you very much and you cannot find it in any other boutique! It is only sold at $80!’ is not an offer, instead, it is just a invitation to treat . Offer is the expression of a person's intention to others to have a legally binding agreement. Offer is not an invitation to treat. Invitation to treat has no legally binding effect. Harvey v Facey [1893] UKPC 1, in case supply of information is not an offer. Martin's words are provision of information, they are not offer. So, no contract formed between Martin and Carmen. Carmen cannot sue Martin for breach of contract. Carmen can make the offer by requiring to buy the T-shirt, and the sales was completed when Martin accept Carmen's offer to buy. b)Scenario 1 No, Martin cannot sue Joyce for breach of contract. Joyce's letter is an offer. Offer is the expression of a person's intention to others to have a legally binding agreement. Basic terms of contract, normally the price and property, are needed in the offer to form an agreement. The computer model and the price were mentioned in the letter, so the basic terms are satisfied. Moreover, an offer must show the intention of the offeror to make an offer to the offeree. The letter's further content about the reply method and additional condition about the sale shows the Joyce's intention to make this offer. Martin's response...
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...Elements of the law of contract Catharine MacMillan Richard Stone 2009 LLB 2650040 Diploma in Law 2690040 page 2 University of London External System This subject guide was prepared for the University of London External System by: u Catharine MacMillan BA (Victoria) , LLB (Queen’s, Canada), LLM (Cantab), Lecturer in Law, School of Law, Queen Mary, University of London and u Richard Stone LLB (Soton), LLM (Hull), Barrister, Professor and Head of Law, Lincoln Law School, University of Lincoln. In the 2004 edition of this guide Catharine MacMillan was primarily responsible for Chapters 1–2, 4–5, 7–8, 10–14 and 16–17. Richard Stone was primarily responsible for Chapters 3, 6, 9 and 15. Catharine MacMillan was responsible for the 2009 revision. This is one of a series of subject guides published by the University. We regret that owing to pressure of work the authors are unable to enter into any correspondence relating to, or arising from, the guide. If you have any comments on this subject guide, favourable or unfavourable, please use the form at the back of this guide. Acknowledgements Figure 15.1 has been reproduced by kind permission of: u Figure 15.1: © Illustrated London News Picture Library. Photographs © C. MacMillan, 2003 Publications Office The External System University of London Stewart House 32 Russell Square London WC1B 5DN United Kingdom www.londonexternal.ac.uk Published by the University of London Press ©...
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...contract? All the 4 following elements are needed for forming contracts: - a. Offer b. Acceptance c. Intention d. Consideration [B] Offer What is an offer? • The expression of a person’s intention to others to have a legally binding agreement. • The maker of the offer is called the offeror. The recipient is called the offeree. Important rules about offers: - (a) Certainty of the offer A contract must contain the basic terms of the relevant transaction. Normally, the following 2 items are needed to form an agreement: - i. Price (e.g. how much is the house that I am going to sell to you?) ii. Property (the seller has to show the buyer the goods or to describe them briefly: Hillas & Co Ltd v Arcos Ltd [1932] All ER Rep 494). * Under the Sale of Goods Ordinance (cap.26 of the Laws of Hong Kong), the buyer is required to pay a reasonable price for his purchased goods if there has not been a specified price in the agreement. Under the Supply of Services Ordinance (cap.457 of the Laws of Hong Kong, the party contracting with the supplier has to pay a reasonable price for the relevant service if there has not been a specified price in the agreement. Contracts not involving sale of goods or supply of services include those involving sale of land, sale of shares, sale of copyright and hire of goods. The courts would not provide for a reasonable price for these agreements. * Note that the price or property may not have to be stated...
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...INTRODUCTION TO THE LAW OF CONTRACT DEFINITION A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock: “A promise or set of promises which the law will enforce”. The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default. CLASSIFICATION Contracts may be divided into two broad classes: 1. Contracts by deed A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of property or to create a legal obligation or contract. 2. Simple contracts Contracts which are not deeds are known as simple contracts. They are informal contracts and may be made in any way – in writing, orally or they may be implied from conduct. Another way of classifying contracts is according to whether they are “bilateral” or “unilateral”. 1. Bilateral contracts A bilateral contract is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods. 2. Unilateral contracts A unilateral contract is one where one party promises to do something in return for an act of the other party, as opposed to a promise, eg, where X promises...
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...INTRODUCTION TO THE LAW OF CONTRACT DEFINITION A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock: “A promise or set of promises which the law will enforce”. The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default. CLASSIFICATION Contracts may be divided into two broad classes: 1. Contracts by deed A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of property or to create a legal obligation or contract. 2. Simple contracts Contracts which are not deeds are known as simple contracts. They are informal contracts and may be made in any way – in writing, orally or they may be implied from conduct. Another way of classifying contracts is according to whether they are “bilateral” or “unilateral”. 1. Bilateral contracts A bilateral contract is one where a promise by one party is exchanged for a promise by the other. The exchange of promises is enough to render them both enforceable. Thus in a contract for the sale of goods, the buyer promises to pay the price and the seller promises to deliver the goods. 2. Unilateral contracts A unilateral contract is one where one party promises to do something in return for an act of the other party, as opposed to a promise, eg, where...
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...servanda”, (“agreements must be kept"). The common law of contract originated with the now-defunct writ of assumpsit, which was originally a tort action based on reliance. Contract law falls within the general law of obligations, along with tort, unjust enrichment, and restitution. Jurisdictions vary in their principles of freedom of contract. In common law jurisdictions such as England and the United States, a high degree of freedom is the norm. For example, in American law, it was determined in the 1901 case of Hurley v. Eddingfield that a physician was permitted to deny treatment to a patient despite the lack of other available medical assistance and the patient's subsequent death. This is in contrast to the civil law, which typically applies certain overarching principles to disputes arising out of contract, as in the French Civil Code. Other legal systems such as Islamic law, socialist legal systems, and customary law have their own variations. In contemporary times, each case requires an agreement between each other. It is intended that the contract is important in an agreement to prove that the two sides can conduct issues in a more prudent and responsible. Contract means the law that regulates the deal. The agreement is an agreement between two or more parties regarding the subject matter. It should be understood that the term of the contract is more specific, while the term of the agreement is more common. Only an agreement that has the characteristics of a contract only...
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...BUSINESS LAW BLO1105 2014 Prepared by Darren Parker BLO1105 – Business Law ------------------------------------------------- Business Law Students’ Manual ------------------------------------------------- 2014 Edition This Manual contains materials essential for all students undertaking Business Law, including: * ------------------------------------------------- Course Guide for Business Law; * ------------------------------------------------- Unit of Study Syllabus for Business Law: * ------------------------------------------------- Lecture Program for the Unit of Study; * ------------------------------------------------- Tutorial Programs and Questions; * ------------------------------------------------- Past Examination Papers; and * ------------------------------------------------- Other essential data regarding the Unit of Study. Manual and Tutorial Program compiled by Darren Parker (College of Law and Justice) VICTORIA LAW SCHOOL College of Law and Justice Unit Coordinator – Robert Alvarez Robert.Alvarez@vu.edu.au TABLE OF CONTENTS ------------------------------------------------- ITEM DESCRIPTION PAGE/S NUMBER 1. Table of Contents 2 2. Introduction 3 3. Assessment 4 4. Assignment instructions 4 -17 5. Assignment Topics for 2014 18-21 6. Tutorial...
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