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Contracts - week 2 Consideration I cried because I had no shoes, till I met a man who had no feet. So I said, You got any shoes youre not using? ~ Steven Wright Consideration Defining Consideration some act or forbearance involving legal detriment to the promisee, or the promise of such an act or forbearance, furnished by the promisee as the agreed price of the promise. Detriment Bargain Consideration Must flow both ways: consideration consideration Consideration Australian Woollen Mills v Commonwealth AWM claimed unilateral contract Cth promised to pay subsidy AWM purchased wool The purchase of wool not good consideration - not done at request of promisee No quid pro quo - ‘this for that’ Consideration A promises B - ‘I will pay you $1000 on your arrival in Sydney’ B travels to Sydney Has B provided consideration? - No No quid pro quo unless A requested it Conditional gift. Travel to Sydney is the condition. Consideration A promises B - ‘I will pay you $1000 on your arrival in Sydney’ B travels to Sydney because he needs money - airfare costs him $250 No consideration Reliance on promise and detriment May be estoppel Consideration Must be given on request of promisor Must move from the promisee Must be sufficient Need not be adequate Must not be illusory Past Consideration is No Consideration Promise to Perform an Existing Duty is Not Consideration Consideration Must be given on request of promisor Australian Woollen Mills v Commonwealth Consideration Must move from the promisee Price v Easton Contract between Def and X. Defendant promised to pay Plaintiff for work performed by X. No consideration moved from Plaintiff as promisee Plaintiff unable to sue Joint Promisees Coulls v Bagot’s Executor and Trustee Mr and Mrs Coulls joint promisees No consideration given by her But consideration given on behalf of both and therefore moved from both. Consideration Consideration must be sufficient Consideration need not be adequate Threshold - mus
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