Chapter 5 Self-test questions

1. The doctrine of consideration can be outlined in the form of three rules. Which one of the following is incorrect?

Consideration must be sufficient

Consideration must be adequate

Consideration must not be past

Consideration must move from the promise

2. How might one avoid the need for consideration in a commercial transaction?

Get both parties to sign

Make use of a deed

Pay £1.00

Rely on the doctrine of estoppel.

3. Professor Treitel says, "What the law is concerned with is the consideration for a promise—not the consideration for a contract" (quoted at paragraph 5.2 in the textbook). What exactly does he mean?

That consideration should be provided by the promisee and not a third party

That consideration does not require the presence of both a benefit and a detriment

That there must be a bargain, but that the bargain need not be a good one

4. In which of the following cases can withdrawal of a threat of court action be regarded as good consideration? (NB: Any forbearance from court action must be expressly or impliedly requested to constitute good consideration.)

Where the claim given up is a doubtful one but the claimant was unaware of this

Where the claim given up is a doubtful one and the claimant knew it to be so

Where the claim given up would have failed but the claimant was unaware of this fact

Where the claim given up would have failed and the claimant knew this to be so

5. Joe promised to pay his nephew Toby, a member of the mountain patrol rescue unit, £500 if any of the family got into danger whilst climbing and he did his utmost to save them. On the family climbing holiday, Joe's son is caught in bad weather and loses his footing in a ravine. An emergency call is made to the police and Toby joins the search and rescue party. He continues searching well into the night after most of the mountain rescue team have clocked off as he believes he recognises his cousin's faint cries for 'Help'. Eventually he manages to find his cousin and bring him to safety. Joe refuses to pay up. What authority, if any, can Toby rely on in order to recoup the money promised? (Assume for the purpose of this question that there is a legal duty to rescue in English law as in other continental systems.)

Collins v. Godefroy (1831) 1 B & Ad 950

Glasbrook Bros Ltd v. Glamorgan CC [1925] AC 270

Williams v. Roffey Bros [1991] 1 QB 1

None of the options given are correct

6. On which of the following bases might Stilk v. Myrick be explained? Select all that apply.

Fear of duress

Practical benefit

Lack of consideration

None of the above

7. All three judges in Williams v. Roffey Bros mention Stilk v Myrick in their judgments. What do they do with the case?

Stilk v. Myrick is applied

Stilk v. Myrick is refined

Stilk v. Myrick is overruled

8. Various explanations of "practical benefit" were offered by the judges in Williams v. Roffey Bros. Which of the following "practical benefits" was not relied upon in the case?

Better supervision of the carpentry work on a flat-by-flat basis by the claimant

Instigation of a formalized system of payment

Avoidance of the trouble, expense and delay of employing other subcontractors

Avoidance of a deliberate breach of the contract by the claimants

9. George lent his daughter Claire £5,000 interest-free to be paid back after five years. It was intended that this money would help her set up her own flower business. The flower business failed and George's pension was insufficient to live on. At the end of the five years, both are in financial difficulties. They agree that Claire will pay George £3,000 (rather than £5,000) in full satisfaction of the debt. A year later, George has again run out of money. He attempts to reclaim the remaining £2,000. In which of the following cases might this be possible?

Claire's husband had paid George the £3,000 by cheque in full settlement of the debt and on the agreement that George would not pursue the remaining amount in court

Claire had paid the £3,000 six months earlier than agreed, when her father was desperate for the money

Claire had paid the £3,000 in euros so her father could buy a house in southern Spain and live cheaply out there

Claire had asked her father to reduce the repayment amount because her business was failing. Just after repaying £3,000, the Queen Mother died and her business became renowned.

10. One of the rationales behind the use of consideration in the pre-existing duty cases is the desire to protect the promisor from duress by the party promising to perform his pre-existing duty. The adoption of a duress-based approach can entail a number of (sometimes incompatible) propositions. Which of the following propositions does not follow from the adoption of a duress-based approach?

The court should be readier to find the existence of consideration

Renegotiations of a contract should be given effect to provided they are freely entered into

The scope of the doctrine of consideration is too narrow

The scope of the doctrine of consideration is too broad

11. In each of the cases below, Y fails to fulfil her promise to pay. Which of the following are exceptions to the general rule that past consideration is not good consideration? Select all that apply.

X gave Y extra lessons in contract law over a period of three years, after which Y managed to pass her final exams. Having become a barrister on the strength of these results, Y promised to pay X for all her help over the three years.

Y was in withdrawal and needed some hard drugs. She asked X to find them for her. X did so on the understanding that she would be recompensed for this act. Y later promised to pay X a substantial sum for this act.

Y was on her deathbed. She asked X to arrange for her estranged mother to fly over and see her so as to finally make peace. X did so and Y later promised him a substantial sum in return.

X bought a specialist arctic tent from manufacturer Y. At no extra cost, Y later provided X with a standard 3 year guarantee to cover the tent.

12. In Combe v. Combe, Denning LJ stated "The doctrine of consideration is too firmly fixed to be overthrown by a side-wind". To which of the following propositions was he referring in this quotation?

Duress-based approaches are satisfactory in cases of contract modification but not contract formation

The doctrine of estoppel can only be invoked by litigants able to establish that the promise on which they base their claim is supported by consideration

The doctrine of estoppel can never stand alone as a cause of action in itself

Equitable principles cannot replace the doctrine of consideration

13. Which of the following represents a case of promissory estoppel?

Y sells a cottage on his land (with its own entrance) to X. Later, on learning that X is a keen gardener, Y promises to give X use of some land adjoining his cottage. X spends much time and money tending these gardens. He is encouraged by Y and wins a large number of prizes for his work. When Y dies, his heir refuses to allow X to continue to use these gardens.

Y bank pays £100 into X's account by mistake. X queries the transaction but is assured the money is his. X spends the money. Y later tries to recover the mislaid funds.

Y sells X a horse with a written guarantee that the "horseshoes are in good condition". (Both are Spanish and believe the word for 'hooves' to be 'horseshoes'). The horse is in fact lame. Y tries to avoid paying damages on the ground that the horseshoes are indeed in perfect condition.

None of the options given are correct

14. Which of the following are essential ingredients of promissory estoppel? Select all that apply.

A clear and unequivocal promise by the promisor

A vague assurance by the person said to be the promisor

An alteration of the position of the promise

The provision of consideration by the promise

It is inequitable for the promisor to go back on his promise

15. There have been very few calls for reform of the doctrine of consideration from the world of commercial practice. Which of the following might be said to be one of the main reasons for this?

International restatements of contract law do not use the doctrine and have more power than English doctrine in the world of commerce

The doctrine of duress is more readily used, displacing the need for an examination of consideration problems

The doctrine of intention to create legal relations has in commercial circumstances all but replaced the doctrine of consideration

The doctrine of consideration has been interpreted flexibly such that it is almost always found in a commercial context so that there is no practical need to reform the doctrine

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