Consideration (LAW)
A father lent money to his son, and said that if the son stopped complaining about the way the father distributed property in his will he would not have to pay back the debt. The son agreed and a promissory note was drawn up. The father died and the estate sought to recover the debt from the son. The court had to decide whether ‘not complaining’ was considered ‘good’ consideration for the promise of not needing to repay the debt.
-White v Bluett
-Insufficient consideration
-No value in the eyes of the law, due to it being an emotional promise and a non-tangible feature of an agreement
An unmarried father allowed his daughter to live with her mother and agreed to pay the mother £1 per week to look after and keep the daughter happy. When the mother remarried, the father ceased payments. The question for the court was, had the mother provided good consideration for the promise, bearing in mind she was under statutory duties to care for the child?
-Ward v Byham
-Good Consideration
-The mother went beyond her legal duty to look after the child.
An agreement for the purchase of a horse had been completed between buyer and seller. Following the completion of the contract, the seller made a warranty that the horse was "free from vice". Upon delivery, it was discovered by the buyer that the horse was vicious in behavior. The buyer consequently sued.
-Roscorla v Thomas
-His promise was unsupported by consideration
-The rule in English contract law that consideration contracted for in the past does not amount to good consideration for a present agreement.
William McArdle left a house to his five children in equal shares, subject to a life interest for his widow. The wife of one of these sons, Mrs Marjorie McArdle, carried out improvements to the house amounting to £488. She also bore the cost of these repairs. After the repairs had been carried out, she got all the five children of McArdle to sign a document in which they promised to repay Mrs McArdle the £488 out of the estate when it was eventually distributed. After the testator’s widow died, Mrs McArdle asked for payment. However, the other four sons refused to pay her. She tried to enforce her interest in the property in court.
-Re McArdle
-Her consideration was in the past.
-Past consideration is not a good consideration. Therefore, the agreement was unenforceable.
B was convicted of unlawful killing and asked L to petition the king on his behalf. L was successful and B offered him £100 a reward, but later refused to pay.
-Lampleigh v Braithwaite
-Good consideration
-Was in the past, but was of such significance that it was accounted into the agreement.
C was asked to do some extra work. He did work and afterwards was promised shares in the company rather than payment. When the shares were not provided, C sued.
-Re Casey's Patents
-It was held that there was good consideration (it was not in the past) because it was understood that payment would be given for work undertaken (implied).
The defendant, brought an action against an attorney for negligence and caused the plaintiff, to be subpoenaed to attend and give evidence. G was keen to ensure that C attended as this would help his case, so he promised to pay him one guinea per day he was at court as compensation for the loss of his time. C attended court for six days but was not called to give evidence. At the end of this C demanded payment of six guineas as per the agreement. When this was not paid, he brought an action against the defendant for the sun owing.
-Collins v Godefroy
-The court held that the agreement that the plaintiff’s should attend court was not supported by consideration.
-This was because the plaintiff was under a public duty to attend court anyway having been subpoenaed.
During mining strikes the police provided a patrol of policemen to keep the peace. G felt that greater protection was needed and requested a larger patrol unit for their mine. The Council agreed but charged G for this. G refused to pay when presented with the bill.
-Glasbrook Bros v Glamorgan County Council
-Good consideration
-The provision of additional officers that the owner required, caused the police to go beyond their public duty, therefore they were entitle to the pay.
17 out of 36 sailors deserted the ship. The rest of the crew agreed to continue sailing and the extra wages would be shared between them. They sailed dangerously short-handed and as a result, the remaining crew took on a wide range of additional tasks. When they arrived back safely, the captain refused to pay.
-Hartley v Ponsonby (1857)
-Good consideration
-The crew had to go above their pre-existing contractual duties to enable a safe journey, as well as being in a more dangerous situation, therefore they were entitled to the pay.
No consideration as the crew were already completing an existing contractual agreement, without going above their contractual obligations.
Stilk v Myrick (1809)
Builders made a contract with carpenters for them to work on flats for them. The carpenters got into financial difficulty and were unable to finish the work. The builders, wanting to avoid a penalty for not finishing on time, offered the carpenters extra money to do the work. The carpenters did their work but the builders refused to pay. The carpenters sued the builders for the extra money.
-Williams v Roffey Bros
-There was good consideration.
-The court held that the decision in this case was only applicable to contracts involving the provision of goods and services and no other.
Re S owed tax to the IRC (Inland Revenue) and offered to pay the debt back by instalments without interest. The Collector of Taxes stated that it would contact the company if the arrangement was unsatisfactory and the company began paying off the debt by instalments. The IRC then insisted that the debt be paid immediately or it would begin winding up procedures against the company. The company tried to argue on the basis of Williams v Roffey that its promise to carry out an existing obligation was effective consideration for the agreement to pay by instalments - as the IRC benefited from not having to go to further trouble to recover the debt.
-Re Selectmove
-Nothing extra had been given as consideration.
-As it was a provision of goods and services rather than payment of an existing debt. The IRC was not bound by agreement to accept installments and was entitled to demand the whole debt in one go.
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