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Consideration - Case Study Example

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This contract was supposed to end after Ramsay completes the exam in January 2014. However, in November 2013 Nigella increased the…
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Extract of sample "Consideration"

Download file to see previous pages The discussion of this case study aims to provide the course of action for Nigella in regard to the legal position of this case.
This case study presents the contractual matter between the Nigella and Ramsay. There was a valid agreement between the two parties, and consideration for Nigella to Ramsay was the teaching services she promised to offer to him. On the other hand, Ramsay’s promise to pay for the services constituted consideration of Ramsay to Nigella. When parties are in agreement they all have to discharge the obligations they owe each other until the end of the agreement. This implies that Ramsay was entitled to receive services from Nigella until the end of the agreement. However, this appears to carry periodic payments and the imposition of new prices by Nigella to Ramsay resulted to new conditions and that was tantamount to forming a fresh agreement. This implies that Ramsay was bound by the agreement since he agreed to pay even though he would refuse to pay if the examination was near. It is immaterial for Ramsay to decline to pay the additional charges for the services already offered.
In Central London Property Trust v High Trees House [1947] KB 130 High Court, the High Trees had rented property from Central London Property (CLP) at a cost of £2,500 in 1937. However, during the world war the landlord was unable to let out all the houses and decided to reduce their value in order to attract new occupants. This compelled the defendant to lower the price of the houses by half in 1940 because there was no sign that the situation prevailing at that time was going to improve in the foreseeable future. By the start of 1941, the claimant started paying the reduced rental charges. However, when the war came to a halt the demand for houses increased hence the landlord reverted to the original rental charges.
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