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Question on consideration from BPP kit:
Q: Which of the following statements regarding consideration is correct?
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Performance of an existing legal obligation is valid consideration for the promise of additional reward
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Performance of an existing contractual duty is sufficient consideration for the promise of additional reward
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Performance of an existing contractual duty to a third party is sufficient consideration for the promise of additional reward
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Performance of an extra service in addition to an existing contractual duty is not sufficient
consideration for the promise of additional rewardThe answer given is the 3rd option. How can this be correct? All the options seem incorrect.
The key here is the introduction of ‘a third party’
Where there is an existing contractual duty owed by A to B, if then A performs that existing contractual duty for the benefit of C then that would be sufficient because, prior to that performance by A for the benefit of C, A didn’t owe C anything
Is that OK now?
Hi Mike, but in the lectures you said, something that you’re already required to do cannot be used as sufficient consideration for another contract?
Agreed! But where that ‘something that you are already required to do’ is subsequently done for the benefit of another party, then surely you can see that it should be deemed to be sufficient to support a separate contract
Can’t you?
If I’m already contractually obliged to clean windows in B’s house, when B sells that house does my obligation continue?
I think not!
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