Consideration is an essential element in the formation of a contract. Consideration may be a promise to carry out an action or a promise to refrain from carrying out an act that one is legally entitled to perform. Consideration may be defined in many ways‚ the following definition was obtained from Currie v Misa (1975) LR Exch 153. In this case‚ Lush J said: “A valuable consideration in the sense of the law may consist either in some right‚ interest‚ profit or benefit accruing to one party‚ or
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Promissory Estoppel Promissory Estoppel Defined Sometimes an agreement without consideration will be enforced. This happens when a promise which foreseeably induces promisee to act or forebear becomes binding because injustice can only be avoided by enforcement of the promise. Promise A promise is an assurance‚ in whatever form or expression that a thing will or will not be done. Actual Reliance The promisee must actually and justifiably rely on the promise by the other.
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* Estoppel: situation where a person is precluded from saying something – namely the denial that a promise has been made. Protects person from the injurious consequence of reliance. * For example : creditor agrees to accept lesser sum in discharge of a greater sum‚ cant reclaim full payment refer to D & C Builders Ltd v Rees Estoppel Generally: * Different forms of estoppel: common law estoppel‚ estoppel in pais‚ estoppel by representation estoppel by convention…promissory estoppel
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To begin with‚ the case as regards Richard and Ernie is related to the Doctrine of Promissory Estoppel‚ which is derived from Equity. According to this doctrine‚ if one party to the contract (promisor) makes a promise which the other party to the contract (promisee) acts upon‚ the promisor is estopped from going back on his promise‚ even though the promise did not provide any consideration. Theoretically‚ by this concept‚ Ernie should be estopped from asking Richard for the remaining balance of
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under-priced the contract it stopped work and informed S4H that they would not be able to complete the work unless they were paid more. Although S4H were not happy about this request‚ they had to pay the extra money because no other company was available to complete the work and S4H was on a timetable. Newland completed the work after being paying the extra money and S4H demands a repayment of the extra cost. The issue in this case is whether S4H can recover the money from Newland. Promissory estoppel prevents
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which were stated by Hickling. The first criticism is that "The Rule Of Pinnel’s Case" is a dictum. However‚ it had been used for 200 to 300 years until Dening J developed the promissory estoppel. Next‚ it is also criticized as it illegally extended the doctrine of consideration from creating a contract to modifying a contract. The doctrine of consideration won’t consider the past intention but "The Rule Of Pinnel’s Case" won’t consider the future intention. However‚ in Khoury’s & Yamouni’s views
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Poole: Contract Law ANSWERS - SELF TEST – ENFORCEABILITY OF PROMISES– INTENTION TO CREATE LEGAL RELATIONS‚ CONSIDERATION‚ PROMISSORY ESTOPPEL AND DURESS 1. What is the effect of including an "honour clause" in a written agreement? (2) An "honour clause" has the effect of rebutting the normal presumption of an intention to create legal relations in a commercial agreement (1). Its effect is to render the agreement binding in honour only so that it will not be a legally binding contract. (1) 2. What
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give Theresa an alternative flight on same day. Consequently‚ Theresa was forced to put up a night in Kuala Lumpur. The next afternoon‚ she able to flew to Melbourne on another airline. Due to the cancellation of flight she arrived in Melbourne late and she had lost a business opportunity which causes her losing a considerable sum of money. The main issue in this question is whether Theresa able to sue for her damages. Law and Implication For there to be a valid contract between Theresa and
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Sale of Goods Act- gives statutory rights as a consumer. Was the contract with an existin company or one which is starting up?? Was there any limitation clause in their contract?? Breach of contract causes a contact to be discharged. This is when one party performs defectively‚ differently from the agreement. This can be done by actual breach‚ when there is no performance‚ or through anticipatory breach‚ when they indicate in advance that they will not be performing as agreed. An offer is when
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type of contract‚ a legally binding agreement between two parties to do a certain thing‚ in which one side has all the bargaining power and uses it to write the contract primarily to his or her advantage[1]. Breach of Contract Common Breaches of Contract When any contract is made an agreement is formed between parties to carry out a service and payment for that service. If one of the parties fails to carry out their side of the agreement then the party can be said to be in breach of contract
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