Consideration - Consideration These ARE NOT MODEL answers!...

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Consideration These ARE NOT MODEL answers!! 2005/2006 (Sem 2) q.2(b) 2006/2007 (Sem 1) q.2(a) 2006/2007 (Sem 2) q.3(a) 2007/2008 (Sem 1) q.4(a) 2007/2008 (Sem 2) q.3(a) 2005/2006 (Sem 2) q.2(b) Tam employed Peter as a security guard for Tam’s warehouse. In Peter’s employment contract, it was stated that no overtime would be paid . One morning, when Typhoon no. 10 was hoisted, many of the security guards could not come back to the warehouse to work. Due to shortage of manpower, Tam told Peter that if he could stay on after his shift to patrol the warehouse, Tam would pay Peter overtime payment . Fully advise Tam of whether or not he can refuse to pay Peter because the consideration is not sufficient . Use case law to support your answer. (12 marks) – 20 minutes writing time Note that his question tells you specifically to discuss consideration so there is no need to consider the other requisite elements for a valid contract, just go straight into discussing consideration! Tam will be advised as follows:
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An agreement will not be legally binding unless it is made with some consideration by both parties to the contract. Agreements are entered into because often a party will gain some benefit/suffer detriment in exchange for gaining a benefit/suffering detriment, therefore the party receiving the benefit must in exchange promise something in return, the law will not enforce the giving of gifts. In Currie v Misa consideration was defined as “some right, interest, profit or benefit accruing to one party or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.” Valuable consideration means any benefit to the promisor or detriment to the promisee, which the law recognizes as sufficient to support the promise. In other words it is the price for which the promise of the
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This note was uploaded on 10/20/2010 for the course AAS as3462 taught by Professor Asd during the Summer '07 term at American University of Central Asia.

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Consideration - Consideration These ARE NOT MODEL answers!...

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