Enforceability of promises: consideration and promissory estoppel

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1. A consideration for a promise is the promisee's action, inaction or a promise thereof, which induces the promise in question.

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2. A promise to accept less in full satisfaction of a debt is unenforceable even if a third party makes the part payment.

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3. In relation to the general statement 'consideration must be sufficient but need not be adequate', which one of the following statements is true?

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4. A consideration for a promise must move from someone other than the promisor, although not necessarily from the party enforcing the promise.

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5. As a result of the decision in Williams v Roffey Bros [1991] 1 QB 1, a promise to keep an offer open for a fixed period of time is enforceable if the promisor derives some practical benefit from the promisee.

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6. Which of the following statements regarding the doctrine of promissory estoppel is true? [Please select all that apply.]

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7. A employs B as a consultant in his firm. B is paid £15,000 plus a 'discretionary bonus'. Over the past year, A's firm has doubled its profits and therefore A decides to pay an additional £8,000 to B for 'all of your help and hard work throughout the past year'. B is delighted and buys a new car in anticipation of the extra money being given to her. Subsequently, A changes his mind and refuses to pay the extra £8,000 to B. Which one of the following statements most accurately summarises the legal position?

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8. Which of the following general statements of law can be extracted from the decision in Thomas v Thomas (1842) 2 QB 851? [Please select all that apply.]

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9. In which one of the following situations is the promise in question unlikely to be supported by a valid consideration?

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10. For the doctrine of promissory estoppel to operate, there must be a clear and unequivocal express promise that is relied upon by the promisee.

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11. B has agreed to employ A to deliver and erect a conservatory at an all-inclusive price of £10,000. Midway through the contract, A informs B that his business is facing financial difficulties and that he will be unable to complete the contract. B agrees to pay an extra £5,000 to A if A completes the job because she has just found a buyer (X) for her house who wants to move in quickly. On completion, A receives £10,000 from B but claims the extra £5,000. B refuses to pay on the grounds that A has not provided any consideration for the additional payment. Which one of the following statements is the most likely to be true?

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12. A employs B to paint the outside walls of his house for the sum of £2,300. When B completes the painting, A refuses to pay him because he is currently suffering 'liquidity problems'. One month later, A wins a local lottery competition. He contacts B by telephone and tells him that he will pay him the outstanding £2,300 provided B also paints the window frames at the front of the house for an additional £100. B agrees and paints the frames. A now refuses to pay B more than the original £2,300. Which one of these statements most accurately summarises the legal position?

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13. Which one of the following cases is an authority for the principle that performance of an existing contractual duty owed to a third party may be consideration for a promise?

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14. A is B's landlord. A offers to reduce B's rent for six months because B is in financial difficulty. B is very pleased and pays the reduced rent for two months. At this point, A demands full payment of rent for those two months because B has won a large amount of money on the National Lottery. Which one of the following statements most accurately summarises the legal position between A and B?

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15. Which of the following consideration rules can be extracted from Pao On v Lau Yiu Long [1980] AC 614? [Please select all that apply.]

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16. It is well established that, for the doctrine of promissory estoppel to operate, there must be some detrimental reliance by the promisee on the promise.

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17. A owes B £10,000. With the knowledge that B has run into some financial problems, A starts to pressurise B to agree to a reduction of the debt. B finally agrees to accept £8,000 in full satisfaction of the debt. B receives £8,000 from A and now brings an action to claim the balance. Which of the following statements most accurately summarise the legal position? [Please select all that apply.]

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18. In English law, unlike a claim under the promissory estoppel doctrine, a proprietary estoppel may create fresh rights as a new cause of action for claiming an interest in land.

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