Question 1

A valid deed is a means of enforcing a promise without the need for consideration

Accepted Answer

A valid deed is a legal document that is signed, sealed, and delivered by the person making the promise (the grantor). It is a binding and enforceable promise, even if there is no exchange of consideration (money, goods or services) involved.

Question 2

Which of the following are required to raise the defence of promissory estoppel?
A) Both parties must have modified their contractual obligations
B) One party must have relied detrimentally upon the other
C) There must be a pre-existing agreement between the parties
D) There must be an obligation to pay money under the contract

Accepted Answer

B,C

Question 3

Which of the following are features of 'good consideration'?
A) It is not past consideration
B) It is of value
C) It must be a physical thing
D) It can include the doing of immoral acts

Accepted Answer

Good consideration must be of value and cannot be past consideration (something that has already been done or given prior to the formation of the contract). It does not need to be a physical thing and should not involve the doing of immoral acts.

Question 4

In which of these jursidictions can promissory estoppel be used as the basis for a contract? A) Austrialia B) Canada C) Certain US states D) England & Wales

Accepted Answer

The answer of In which of these jursidictions can promissory...

Question 5

What is the function of consideration?

Accepted Answer

The answer of What is the function of consideration?...

Question 6

Are the rules on what can and cannot constitute valuable consideration sufficiently clear? If not, how might they be improved?

Accepted Answer

The answer of Are the rules on what can and...

Question 7

Should the Court of Appeal decision in Williams v Roffey be regarded as a great leap forward, preventing rigid rules getting in the way of business practice or an act of vandalism against rules that must remain intact?

Accepted Answer

The answer of Should the Court of Appeal decision in...

Question 8

Explain the rule laid out by the Privy Council in Pao On v Yau Liu Long and when it will apply.

Accepted Answer

The answer of Explain the rule laid out by the...

Question 9

To what extent could it be argued that consideration is essentially identical to the concept of reliance?

Accepted Answer

The answer of To what extent could it be argued...

Question 10

Could it be argued that reliance would be a more cogent basis than consideration for the enforcement of contracts?

Accepted Answer

The answer of Could it be argued that reliance would...

Question 11

Define the concept of 'waiver'.

Accepted Answer

The answer of Define the concept of 'waiver'....

Question 12

It is said that promissory estoppel is 'suspensory in effect'. What does this mean?

Accepted Answer

The answer of It is said that promissory estoppel is...

Question 13

Which of these two cases illustrate the rule that consideration need not be adequate but merely sufficient? A) Chapel v Hicks B) Foakes v Beer C) Thomas v Thomas D) Chapell & Co Ltd v Nestle

Accepted Answer

In Thomas v Thomas, the court held that consideration must be sufficient but need not be adequate, as evidenced by the agreement to pay a nominal sum for the use of a property. In Chappell & Co Ltd v Nestle, the court found that even wrappers from chocolate bars, which were of negligible value, constituted sufficient consideration for the purpose of a contract, again illustrating that consideration need not be adequate, just sufficient.

Question 14

Which of the following would be regarded as valuable consideration?
A) Agreeing not to sue the promisor for a previous breach of contract
B) Agreeing to do an existing statutory duty
C) Giving money to a charity nominated by the promisor
D) A promise made under a previous contract with the promisor

Accepted Answer

Consideration must be something of value to the promisor. Agreeing not to sue the promisor for a previous breach of contract (A) and giving money to a charity nominated by the promisor (C) are both of value to the promisor.

Question 15

A deed is only valid once is bears a wax seal

Accepted Answer

This statement is not true. A wax seal is not necessary for a deed to be valid. Many modern deeds are executed without the use of a wax seal. The validity of a deed depends on it meeting legal requirements, such as being signed by the parties involved and properly recorded with the appropriate authorities.

Question 16

A promise to do an act (as opposed to simply paying money) can in itself be valuable consideration?

Accepted Answer

A promise to do an act can be considered valuable consideration in a contract, as it involves one party making a commitment to take a specific action or fulfill a duty.

Question 17

Consideration of £1, or even a peppercorn, could be sufficient consideration for the sale of a house?

Accepted Answer

The concept of consideration refers to something of value that each party to a contract gives to the other. It does not need to be monetary, and can even be symbolic, such as a peppercorn. As long as both parties agree to the consideration and it holds some value, it is sufficient to make the contract legally enforceable. Therefore, a consideration of £1 or a peppercorn could be sufficient for the sale of a house.

Question 18

In English law, promissory estoppel is a defence to a claim and can be raised only where there is a pre-existing contract?

Accepted Answer

Promissory estoppel in English law typically requires a pre-existing legal relationship or contract, as it prevents a party from going back on a promise that was relied upon by the other party.

Question 19

Promisory estoppel cannot be used as a defence for paying only part of a debt.

Accepted Answer

Promissory estoppel is a legal principle that prevents a party from going back on a promise that has been relied upon by another party to their detriment. However, it cannot be used as a defence for paying only part of a debt. This is because the principle of promissory estoppel only applies to promises that are made with the intention of being legally binding. A promise to pay only part of a debt is not a legally binding promise, and therefore cannot be enforced under the principle of promissory estoppel.

Question 20

The concept of promisory estoppel was found orignally in the case of Hughes v Metropolitan Railway?

Accepted Answer

The concept of promissory estoppel was first established in the case of Hughes v Metropolitan Railway (1877).

Quiz 3: Consideration and Other Tests of Enforceability

A valid deed is a means of enforcing a promise without the need for consideration

Which of the following are required to raise the defence of promissory estoppel?

Which of the following are features of 'good consideration'?

In which of these jursidictions can promissory estoppel be used as the basis for a contract?

What is the function of consideration?

Are the rules on what can and cannot constitute valuable consideration sufficiently clear? If not, how might they be improved?

Should the Court of Appeal decision in Williams v Roffey be regarded as a great leap forward, preventing rigid rules getting in the way of business practice or an act of vandalism against rules that must remain intact?

Explain the rule laid out by the Privy Council in Pao On v Yau Liu Long and when it will apply.