Question

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.

1. John 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 would pay him $200.

2. John 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.

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

4. Dale 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.

5. On 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.

Answer 1

This particular questions are realting to the consideration. Before we proceed further, we need to know what does Consideration mean. Here is the definition of consideration -

“When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing something, such act or abstinence is called a consideration for the promisee.”

Here are the answers to the questions. Also mentioned the rule relating to the consideration.

Answer to 1 - A Valid consideration.

Rule - Past Voluntary services;

At times, a person might render voluntary services without any request or promise from another. If the person receiving the services makes a subsequent promise to pay for the services, then such a promise is enforceable

Answer to 2 - A Valid consideration.

Rule - It cannot be Unlawful;

A consideration that is against the law or public policies is not valid.

Answer to 3 - Not a Valid Consideration.

Rule - It must have value in the eyes of the law;

While the law allows the parties to decide an ‘adequate’ consideration for them, it must be real and have value in the eyes of law. While the Court will not consider inadequacy, it will look at it to determine if the consent was given by the party with free-will or not.

Answer to 4 - Valid Consideration.

Rule - Present consideration.

If the promise and consideration take place simultaneously then it is present or executed consideration.

Answer to 5 - Valid Consideration

Rule - It should be over and above the Promisors’ existing obligations

If the promisor is already obligated either by his promise or law to perform or abstain from a certain act, then it is not a good consideration for a promise.