Consideration

Masters
Case Study
Law
Pages 8 (2008 words)
Download 0
A valuable consideration, in the sense of the law, may consist either in some right, interest, profit or benefit accruing to the one party, or some forebearance, detriment, loss or responsibility, given, suffered or undertaken by the other." - Lush J: Currie v Misa [1875], para 162

Introduction


Since the Court of Appeal decision in Williams & Roffey Bros [1990] a new area of uncertainty has arisen in the doctrine of consideration, as we shall see. Effectively the Court of Appeal ignored a House of Lord's decision; a decision which has been around for more than 400 years.
Pinnel's Case [1602] examines the doctrine from the view point of Creditors who are already owed something [a legal duty or money], and appear to agree to accept part-payment of the debt. The facts of the case were that a borrower, Cole, owed Pinnel [the lender] the equivalent of 8.50 [8-10s-0d] which was to be repaid on 11 November. At the lender's request, the borrower paid 5.11 [5-2s-2d] on 1 October, which the lender claimed to accept in full settlement of the debt. The lender then successfully sued the borrower for the outstanding amount. The House of Lords held that since no consideration was exchanged to enforce the promise of the lender to accept part-payment of a debt on the due date from the borrower, then the lender could pursue full payment of the debt at a later date.
This remains the general rule at common law. However in Pinnel's Case it was also said that the agreement to accept part payment would have bound the lender if fresh consideration had been provided to show accord and satisfaction. This might be:
Although influential, this case was actually decided on a technicality. ...
Download paper
Not exactly what you need?

Related papers

Consideration and Intention to Create Legal Relation
This is a case of acceptance by conduct. Acceptance need not necessarily be in writing. In the case of Carlill v Carbolic Smoke Ball1, Miss Carlill demonstrated her acceptance of the offer by purchasing the smoke ball Another issue for determination is whether there was the intention by the parties to create a legally binding relationship. We will access the issue of promissory estoppels to access…
Consideration in English Law is Required in Every Contract
This essay will look into English law of contracts in relation to consideration. Overview Consideration can be described as the price to which a promise is given in return for something else. In most cases, promises need not to be in terms of money but in many other forms. According to the law of English contracts, if an agreement or a promise is not supported by consideration then it is…
Consideration and Promissory Estoppel in the Contract Law
In addition, there should be a clear and unambiguous statement by the promisor that his strict legal rights will not be enforced, i.e. one party must make a promise which is to be binding. The Scaptrade [1983] QB 529. However, it can be implied or made by conduct as in the Hughes Case (1877).…
Principle of consideration
But why it is too simplistic to assume if there is consideration present a promise is enforceable by examining different facets of consideration within the above context.…
Consideration in Law of Contract
Consideration in Law of Contract …
Consideration
Since the Court of Appeal decision in Williams & Roffey Bros [1990] a new area of uncertainty has arisen in the doctrine of consideration, as we shall see. Effectively the Court of Appeal ignored a House of Lord's decision; a decision which has been around for more than 400 years.…
contract law, Doctrine of consideration
Professor Patrick Atiyah1.…