Question2Set of problems(10 marks) Topic 3

Examine the following five situations and:

state whether consideration is present from both Dale and John (just write Yes or No; ignore other issues such as Intention) and

state the rule and the case that best support your decision.

1John cleans his next door neighbour Dale's swimming pool because it was inundated with leaves blown from a tree on his land during a storm. Two weeks later Dale tells John that she so appreciated the excellent job he did that she will pay him $200.

No

The courts have generally rejected as unenforceable promises made 'in consideration of nature love and affection' (Sweeney, O'Reilly & Coleman 2016, p. 205).

Eastwood v Kenyon (1840) 11 Ad & El 438

2John has borrowed $4,000 from Dale and it is agreed that he will repay the full amount by 30 June 2020 or else he will also be required to pay $400 interest. John informs Dale that he cannot repay her by 30 June but offers to pay her $2,000 on 30 May provided she promises to accept that amount and promise not to sue her for the outstanding amount and the interest. Dale agrees to John's offer so he pays her the $2,000.

No

A part payment from an existing debt is not adequate consideration( LAW00150, Topic 3 Lecture, 19/3/2020, slide 24).

Pinnel's case

Foakers v Beer

3John has promised to give Dale $10,000 if she promises to be friendly to him for the next two years.

No

"Illusory promises are not sufficient consideration"( LAW00150, Topic 3 Lecture, 19/3/2020, slide 20).

Eastwood v Kenyon

Dunton v Dunton

4Dale is a police officer.While driving in her police car she sees John being assaulted by a thug. John offers Dale $100 to arrest the assailant.

No

"Promising to perform a public duty already owing is not good consideration" (Sweeney, O'Reilly & Coleman 2016, p. 213).

Collins v Godefroy, [1813] 109 ER 1040

Glasbrook v Glamorgan County Council, [1925] AC 270

5On Monday Dale agrees to clean John's windows the following Friday for $100. The day before she is due to do the job she is offered $300 to clean another person's windows. She phones John to say that she will be unable to do the agreed work. John is desperate to get the windows cleaned before he hosts a big party at his home on the Saturday so he offers Dale an additional $200 if she does the agreed job on Friday.

Yes

If there is a practical benefit to the promisor( or avoid a detriment from the failure ) and lack of duress the promise to carry out the existing contractual duty could amount to consideration (Sweeney, O'Reilly & Coleman 2016, p. 209).

Williams v Roffey Bros & Nicholls (Contractors) Ltd, [1991] 1 QB 1