Chapter 5 Self-test questions

Consideration and promissory estoppel

Quiz Content

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. The doctrine of consideration can be outlined in the form of three rules. Which one of the following is incorrect?

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. How might one avoid the need for consideration in a commercial transaction?

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. Professor Treitel says, "What the law is concerned with is the consideration for a promise-not the consideration for a contract" (quoted at p.146 in the textbook). What exactly does he mean?

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. In which of the following cases can withdrawal of a threat of court action be regarded as good consideration? (NB: Any forbearance from court action must be expressly or impliedly requested to constitute good consideration.)

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. Joe promised to pay his nephew Toby, a member of the mountain patrol rescue unit, £500 if any of the family got into danger whilst climbing and he did his utmost to save them. On the family climbing holiday, Joe's son is caught in bad weather and loses his footing in a ravine. An emergency call is made to the police and Toby joins the search and rescue party. He continues searching well into the night after most of the mountain rescue team have clocked off as he believes he recognises his cousin's faint cries for 'Help'. Eventually he manages to find his cousin and bring him to safety. Joe refuses to pay up. What authority, if any, can Toby rely on in order to recoup the money promised? (Assume for the purpose of this question that there is a legal duty to rescue in English law as in other continental systems.)

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. On which of the following bases might Stilk v. Myrick be explained? Select all that apply.

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. All three judges in Williams v. Roffey Bros mention Stilk v Myrick in their judgments. What do they do with the case?

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. Various explanations of "practical benefit" were offered by the judges in Williams v. Roffey Bros. Which of the following "practical benefits" was not relied upon in the case?

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. George lent his daughter Claire £5,000 interest-free to be paid back after five years. It was intended that this money would help her set up her own flower business. The flower business failed and George's pension was insufficient to live on. At the end of the five years, both are in financial difficulties. They agree that Claire will pay George £3,000 (rather than £5,000) in full satisfaction of the debt. A year later, George has again run out of money. He attempts to reclaim the remaining £2,000. In which of the following cases might this be possible?

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. One of the rationales behind the use of consideration in the pre-existing duty cases is the desire to protect the promisor from duress by the party promising to perform his pre-existing duty. The adoption of a duress-based approach can entail a number of (sometimes incompatible) propositions. Which of the following propositions does not follow from the adoption of a duress-based approach?

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. In each of the cases below, Y fails to fulfil her promise to pay. Which of the following are exceptions to the general rule that past consideration is not good consideration? Select all that apply.

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. In Combe v. Combe, Denning LJ stated "The doctrine of consideration is too firmly fixed to be overthrown by a side-wind". To which of the following propositions was he referring in this quotation?

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. Which of the following represents a case of promissory estoppel?

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. Which of the following are essential ingredients of promissory estoppel? Select all that apply.

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. There have been very few calls for reform of the doctrine of consideration from the world of commercial practice. Which of the following might be said to be one of the main reasons for this?

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