Chapter 7 Self-test questions

. Which of the following statements are true?

The economic value of consideration must correspond to the market value of the subject of the contract.

The economic value of consideration is generally irrelevant.

Only the payment of money can constitute valuable consideration.

Consideration is not required to form a valid contract.

. Which of the following may be distinguished from the general rule that 'past consideration' is no consideration?

An act carried out pursuant to the promisor's request, but without expectation of remuneration.

Services rendered before the promisor's request.

A pays B money in the hope of a binding contract.

An act carried out in pursuant to a request in a unilateral contract.

. Which of the following may constitute sufficient consideration?

A promise which the law regards as void.

A promise to refrain from bringing a claim in good faith.

A promise to refrain from doing what one has no right to do.

All of the above constitute sufficient consideration.

. Which of the following cases supports the view that a 'practical benefit' in the promisor's avoiding of a 'disbenefit' may constitute good consideration?

Pinnel's case

Foakes v Beer

Williams v Roffey Bros

Stilk v Myrick

. In circumstances where B owes A £1,000, may A sue B for the sum after A accepts a lesser sum from a third party as full satisfaction of the debt?

Yes.

Yes, but A must return the money received from the third party.

No.

None of the above.

. Which of the following are types of estoppel?

Proprietary estoppel.

Contractual estoppel.

Promissory estoppel.

All of the above.

. According to Denning J (obiter) in Central London Property Trust Ltd v High Trees House, why were the claimants unable to recover the full rent for the wartime period?

The claimants were estopped from claiming the balance as a result of the wartime agreement.

The principle of good faith prevented the claimants from claiming the wartime period.

The defendants were insolvent, so could not afford to repay the balance.

They had inserted an express variation clause into the lease agreement.

. Which of the below statements is true?

Promissory estoppel is favoured by most judges and has largely replaced consideration.

Despite its wide recognition, promissory estoppel has not often been applied.

Both (a) and (b) are true.

Both (a) and (b) are false.

. Is it true to say that detrimental reliance is a requirement of promissory estoppel?

Yes, detrimental reliance is a requirement of promissory estoppel.

There must be reliance, but it need not be to the recipient's detriment.

There must be detriment, but there need not be any reliance by the recipient.

No, detrimental reliance is not a requirement of promissory estoppel.

. May promissory estoppel create a cause of action in England and Wales?

Yes.

No.

. In what respect have the courts most weakened the rigour of consideration?

In general contract formation.

In the formation of contracts for services.

In the formation of contracts for goods.

In contract variation.

. Under the current law, which of the following types of agreement is not a contract?

Unilateral offers accepted by performance.

Bilateral contracts accepted by the 'payment' of a sweet wrapper.

Gifts not made by deed.

Gifts made by deed.

. Which of the following is a reason against abolishing the consideration requirement in contract formation?

Consideration provides evidence of the parties' intention to create legal relations.

Consideration has been largely superseded by promissory estoppel.

Consideration is an overly complex doctrine.

Other jurisdictions do not use the doctrine of consideration.

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