Consideration Q&A

These law notes are Consideration Questions and Answers. This set of law notes provides model answer to an essay question of if  Williams v Roffey  was correctly decided and if the principle in Williams v Roffey be extended. It further provides two problem questions on consideration and a model answer for each. These notes will show as student how law essays should be tackled and how advice should be given in a simple form.

Question 1

Should the principle in Williams v Roffey be extended to cover the situation encountered in re Selectmove Limited? Give reasons for your answer.

Question 2

Debra hired Simon, a builder, to construct a single storey extension on the back of her house. Simon promised to complete the work by 30th December for £10,000. Debra agreed and paid Simon a deposit of £3,000.

Simon commenced the work on time but due to his poor health and a failure to supervise his workers, the job fell significantly behind schedule. Debra, who was hoping to throw a New Year's Eve party in the new extension, was eager to ensure that the work would be completed on time. She promised Simon an extra £2,000 provided that he meets the original 30th December deadline. Simon agreed.

The work was completed on December 29th and Simon sent Debra an invoice for £9,000. Debra told Simon that she was in financial difficulties and could only pay £7,000. Simon needed this money in order to buy materials for his next job and so he felt that he had no alternative but to accept this amount in full and final settlement.

Simon has recently read that Debra has won £1m on the National Lottery.

Advise Simon whether he is entitled to demand the extra £2,000 promised by Debra.

Question 3

Michael has made the following promises:

1. He promises to sell his 3-year-old BMW car to Chithra for £100.00 as he has recently won a new expensive car in a competition;

2. On returning from holiday, he promises Rachel, his daughter, £50.00 as she had cleaned his house for him whilst he was away; and

3. He has engaged Daniel to build a conservatory, at an agreed price of £15,500, the work to be completed in 6 months, in time for his wife’s birthday party. After 3 months, it became apparent to Daniel that he would not be able to complete the job for the agreed price. He tells Michael that he needs another £2000, otherwise he will quit. Mindful of not wanting to upset the birthday plans, Michael promises to pay the extra £2000. Michael has now changed his mind about the extra payment.

You are required to advise Michael:

1. The rules relating to the requirement of consideration and intention to create legal relations in the law of contract; and

2. If he can be required by the law of contract to fulfil these promises.