Consideration - Contract

CONSIDERATION * Act, or promise of an act which is done in return for a promise SS? Dunlop Pneumatic Tyre v Selfridge and Co o Valuable consideration must consist of some right, interest, profit or benefit for one party, or a forbearance of the other SS? Currie v Misa o must be paid for to be enforceable SS? Parastatidis v Kotaridis A agreed to sell land to B for $200, 000 CONSIDERATION: A promises the LAND B promises the MONEY TWO PROMISES * Consideration to move from a promise o a person who wants to enforce a promise must have paid for it SS? Dunlop Pneumatic Tyre Co v Selfridge and Co * Consideration does not have to move to the promisor SS? Bolton v Madden * Where there are joint promises it is sufficient for one promise to be fulfilled o need only flow from one joint promise B and C have an agreement with A. A can quarry B's land in return for A paying royalties to B and C SS? Coulls v Bagot's Executor & Trustee Ltd * DOCTRINE OF PRIVY o If you are not part of the contract, you cannot enforce it * Must be bargained for o in reliance/return for the promise and not for some other reason SS? Australia Woollen Mills Pty Ltd v Commonwealth * Take the form of a benefit or detriment o Bolton v Madden o Carlill v Carbolic Smoke Ball o Hamer v Sidway A FORBEARANCE TO SUE OR REFRAIN FROM EXERCISING SOME LEAL RIGHT MAY CONSTITUTE CONSIDERATION EVEN IF THE PLAINTIFF WOULD HAVE FAILED IN THE ORIGINAL CLAIM, PROVIDED THAT: * the claim was reasonable * not vexatious or frivolous * plaintiff believed the claim would succeed PAGE 57