Contract- Consideration Introduction and Development

A person (stranger to the contract) cannot sue on the promise where they did not provide the consideration. (Largely solved now by the Contracts Privity Act 1982).

Mr L asked Mr B to do all he could to get him a royal pardon, later offered 100 pounds. Held induced to act by request. Consideration furnished at the request of the promisor will be married together to create a binding agreement. Exception to the rule that past consideration is not valid.

Request to couple with later consideration implied from the facts due to a business context, but not in a domestic context (de facto partner carried out work on the house).

Mr E looked after Sarah until she came of age and promised to pay him back. Rejected concept that moral duty to pay could constitute consideration as all promises would then be binding and annihilate consideration. Past consideration where the promise comes after the act is not valid.

Province offered funding programme to uni students and wanted to reduce later. In return for the funding, province got indirect flow on benefits. Consideration found on the benefits/detriments approach. See also, AG for Eng and Wales v R.

Bargain approach is used in commercial situations where one promise induces another

Mr S was a captain for A and oral agreement that if he finds a good spot, gets to share in the quota. An example of executed consideration (unilateral offer) as the act of finding the fish provided the consideration. See also Holloway v AG (completing the course was consideration). Applied Williams so benefit to Co of finding fish was good consideration, but took it further suggesting no consideration needed for variations in the interest of commercial law.

Accepted at law that a person originally thought to be a stranger may actually be able to sue on the contract if joint promisee and consideration furnished on behalf of both. Here failed on the facts (contract between husband and company only).

As a general rule, the courts will not interfere in an agreement which the parties have deemed to be fair and reasonable (pepper corn example)

Consideration must be enforceable, reasonably definite and lawful

Transferring land to Burrow for a park. The park being named after him was sufficient consideration. It need not be adequate to the promise, but must be something of value in the eyes of the law.

Forbearance from drinking, smoking and gambling until 21 was good consideration- forbearance from something at liberty to do

Forbearance from sending soldier back to unit was good consideration There was no duress as although unpalatable still had a choice, and in some cases disclosure allowed

Offering less than claiming to make the claim go away. Forbearance from pursuing the claim provides consideration for postponing the claim indefinitely see Paulger v Butler

Company agreed to forbear from suing when unbeknownst to them all the validity of the hire purchase agreement for the boat was questionable. Forbearance can be good consideration even if COA later turns out to be unsuccessful, if reasonably believed had a good COA.