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Hi, you're listening to the 
Australian Law Student Law Info 

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podcast. 
Your go to podcast for legal 

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insights in 4 minutes or less. 
I'm Nick Hodgkinson and today 

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we're talking about 
consideration. 

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But first, our obligatory 
disclaimer. 

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The law info is produced by law 
students. 

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For law students it is not, nor 
is it intended to constitute 

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legal advice. 
If you require legal assistance,

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you should contact your local 
Law Society who can direct you 

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appropriately. 
For more information on the 

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Australian Law student, visit 
our website at the Oz Law 

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student.com OK Consideration. 
It's our second episode on 

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contract law. 
Consideration is the lifeblood 

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of contracts and encompasses of 
benefit, detriment, performance 

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or forbearance, voluntarily 
incurred and ancillary to a 

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promise without consideration. 
A promise becomes a mere nudim 

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pactum and is devoid of legal 
force. 

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However, you should note that 
consideration is not required if

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the promise is made under seal 
or deed right. 

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Let's explore 2 approaches to 
understanding consideration. 

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The benefit detriment approach 
understands that the premacy 

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must either confer a benefit on 
the promise or or incur a legal 

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detriment by surrendering or 
forgoing something. 

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This concept is illustrated in 
Beaton and Mcdivitt, where 

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consideration involves either a 
benefit accruing to one party or

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a detriment being suffered by 
another. 

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The alternative approach is the 
quid pro quo bargain approach, 

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where the bargaining promise 
must be made quid pro quo, with 

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the ACT constituting acceptance.
It's performed in reliance on a 

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promise will give rise to an 
estoppel as demonstrated in 

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Australian woollen mills, and 
Commonwealth courts will 

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typically refrain from assessing
the adequacy of consideration 

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except where it is illusory. 
As seen in Woolworths and Kelly,

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past consideration given prior 
to a promise isn't good 

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consideration. 
As established in Ross Scholar 

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and Thomas, the existing legal 
duty rule often surfaces in 

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contract modifications where 
fresh consideration is required 

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to enforce a modified agreement,
and you should refer here to 

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Stillk and Marrick are, however,
a handful of exceptions to this 

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existing legal duty rule. 
For example, if fresh 

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consideration is provided for 
the fresh promise, the modified 

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agreement becomes enforceable to
Hartley and Ponsonby 2nd. 

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A practical benefit obtained by 
modifying a promise to pay more 

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for the beneficiary's 
performance under the original 

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contract will also constitute 
good consideration, as 

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exemplified in Williams and 
Ruffy Bros and Nichols 

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Contractors. 
Conversely, practical detriment 

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incurred by modifying a promise 
to accept less than the 

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beneficiary's original 
performance is also considered 

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good consideration. 
As in Muzamichi and Winadel 

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promises to third parties, 
bonafide compromises and part 

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payment of a debt will all have 
their exceptions to the existing

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legal duty rule, and this 
showcases the nuanced nature of 

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consideration in contract law. 
And there you have it, a 

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comprehensive exploration of 
consideration in 4 minutes or 

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less. 
Join us next time on the 

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Australian Law, Student Law, and
Four podcast. 

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As always, if you have any 
suggestions, please e-mail us at

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team@theozlawstudent.com or 
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on Spotify or Apple Podcasts.