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Title: CONTRACT LAW – ICLR and consideration (lectures 4 & 5)
Description: CONTRACT LAW – Intention to create legal relations and consideration (lectures 4 & 5)

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CONTRACT – ICLR and consideration (lectures 4 & 5)
ICLR: “To create a contract there must be a common intention of the parties
to enter into legal obligations, mutually communicated expressly or
impliedly” – Rose and Frank Co
...
Based on the reasonable
man test ie objective test
...
Not be past - Where a benefit has
already been provided, a promise in return
for that benefit is a promise for ‘past’
consideration and not enforceable –
Eastwood v Kenyon

Hadley & others v Kemp & another
1
...
v Crompton Bros
2
...
Comfort letters – Kleinwort Benson ltd v
Malaysia mining corporation
...
Subject to contract – Chillingworth v
Esche
5
...
Move from the promisee
A C can only claim on a contract if he has
given consideration – Tweddle v Atkinson

Presumption of NO ICLR –
social/domestic agreements

Other side of the same coin as privity –
Dunlop v Selfridge

1
...
Parent and child – Jones v Padavatton

Note: S1 The Contract (Rights of Third
Parties) Act 1999
...
Be sufficient not adequate

1
...
Mutuality of obligations – Simpkins v
Pays
3
...
The context is
all important
...
the promisee does not like
pepper and will throw away the corn’ –
Chappell & o v Nestle & Co
Giving up a legal right? - White v Bluett
Contrast with Hamer v Sidway
NOTE: An existing obligation is not
good consideration and part payment of
a debt is not good consideration
...

Performance of an existing duty
obligation: contractual
Performance of existing obligation NOT
good consideration – Stilk v Myrick
Performance of an EXTRA obligation is good
consideration – Hartley v Ponsonby
EXCEPTION to Stilk v Myrik - ‘factual
consideration’/ ‘practical benefit’ – Williams
v Roffey Bros
...
Benefit to B is capable of being
consideration, so B’s promise will be binding
...
However, in Re
Selectmove, Williams will NOT apply to
claim for debt owed
...

Performance of an existing duty
obligation: owed to the third party
Can be good consideration – Scotson v Pegg;
New Zealand Shipping v Satterthwaite


Title: CONTRACT LAW – ICLR and consideration (lectures 4 & 5)
Description: CONTRACT LAW – Intention to create legal relations and consideration (lectures 4 & 5)