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Question on privity of contract and consideration

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Question on privity of contract and consideration

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
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  • November 19, 2017 at 5:15 pm #416699
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    R’s wife K expressed the wish that R, if he survived her, should have the use of her house. After K’s death her executor agreed to allow R to occupy the house a) because of K’s wishes and b) on the payment by R of $24 per year

    R seeks to enforce this agreement and the Executor wishes to avoid it in order to sell the house. What is the legal position?

    a) R can enforce the agreement on the basis of his deceased wife’s wishes
    b) R cannot enforce the agreement because the promise to pay is not consideration
    c) R can enforce the agreement because the promise of $24 per year provides consideration for it
    d) R cannot enforce the agreement because the promise of $24 per year is not sufficient consideration.

    Correct answer is C, but please explain me other 3 options also. Also why the answer cannot be a)? Because there is an exception to privity of contract, that when a person dies all of his contracts can be enforced by his successors who are 3rd parties to original contract.

    November 19, 2017 at 5:19 pm #416702
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23318
    • ☆☆☆☆☆

    Somebody’s “wishes” is not sufficiently certain to be enforceable

    A promise to pay IS (executory) consideration … and it is sufficient to merit the title consideration

    The law (courts) are not concerned with adequacy … so long as a promise has a value then it is sufficient to merit the title consideration

    “A peppercorn has a value and, even though the recipient may not like pepper and throws away the corn, it still has a value”

    OK?

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  • The topic ‘Question on privity of contract and consideration’ is closed to new replies.

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