Consideration

In this lesson

1. 0:00 Introduction to consideration in contracts
2. 0:13 Sufficient versus adequate consideration explained
3. 0:41 Types of consideration: executed, executory, and past
4. 2:44 Why past consideration is not valid
5. 3:24 Enforceability of extra promises to pay
6. 5:00 Practical benefit and the Williamson Roffey case
7. 7:16 Paying less: exceptions to the general rule
8. 9:08 Doctrine of promissory estoppel principles
9. 10:14 Central London Property Trust v High Trees case study
10. 12:27 Applying promissory estoppel: key conditions and limits

About this lesson

Understanding these rules is crucial for Corporate and Business Law (LW) and will help you spot valid and invalid contracts in exam scenarios. The lesson covers the core principle: consideration must be sufficient but need not be adequate. You'll work through practical examples—like selling a car for far less than it's worth—to see why courts won't intervene in bad deals. You'll also explore the three types of consideration (executed, executory, and past), and learn why past consideration is never valid. A key takeaway is that you cannot be paid for work already completed before a contract was formed. You'll then examine when you're bound to pay extra money. The critical rule is that merely performing your existing contractual or statutory duty doesn't entitle you to more payment. However, the landmark case Williams v Roffey Brothers shows that if you provide a practical benefit—such as avoiding a penalty or delivering early—extra payment can become legally enforceable, provided there's no undue influence involved. Finally, you'll learn when you can pay less than a full debt. While smaller payments generally can't settle larger debts, four exceptions apply: providing alternative consideration, arranging payment from a third party, getting all creditors to agree to less, or invoking the doctrine of promissory estoppel. This doctrine—rooted in fairness—prevents a party from breaking a promise they've made, as illustrated by Central London Property Trust v High Trees House. You'll see how promissory estoppel acts as a shield to protect vulnerable parties, not a sword to exploit others.

Duration: 15m