consideration

Hi Ichen, What is your question? Kind regards Vijay

Hello Sir, it is on the BPP exercise book section 4 question 11. The question asked which statement regards to consideration is correct and the answer chose "Performance of an existing contractual duty to a third party is sufficient consideration for the promise of additional reward." I felt it is not correct and the option I selected is "performance of an extra service in addition to an existing contractual duty is not sufficient consideration for the promise of additional reward."

Hi Ichen Generally speaking performing an existing obligation is not sufficient so you'd be right here. However, an exception to the rule is where the performance is to a third party it becomes sufficient and valid. So this is the correct answer. Performance of an existing contractual duty is as I stated above generally not sufficient. However, another exception is where you go “over and above” i.e. you perform an “extra service” as per the case of Hartley v Ponsonby. If this happens then performance of an existing duty is sufficient and valid. You chose a statement which said it is not sufficient which is incorrect. I hope that helps clarifies? Kind regards Vijay

Hi Sir, Thank you so much for your explanation. May I ask could you give me a example that states the rule where the performance is to a third party it becomes sufficient and valid? Because I am not sure of what this actually applied to. Man thanks! Regards Chen

Hi Chen, So if for example I have a contract with you to design and landscape my garden by the end of August for £5,000. But then my mum promises to pay you an extra £500 to make sure you actually finish my garden by end of August then at first sight this looks to be performance of an existing obligation and you would not be entitled to the extra payment of £500. But because the promise is made by a third party i.e. my mum then this becomes valid and you would be entitled to the extra £500. I hope this helps clarifies. Kind regards Vijay