Part 4 - Consideration and Performance of an Existing Duty
2012/// Filed in: Contract Law (UK)
Below are a few relevant principles and leading cases regarding past consideration:
Stilk v Myrick: Performance of an existing contractual duty owned to a promisor is not normally consideration. (Increasing Pact)
Pinnel's Case: A debtor offer to pay a reduced sum back to the lender in full and final settlement will only be sufficient consideration if the lender 1) agrees to accept it without duress, and 2) the debtor provides some extract element that can be treated as consideration (e.g., paying early, paying using a more convenient mode of payment). Without something extra, part payment of an existing debt on or after the date for the payment will never provide consideration for a promise to forgo the balance. (Decreasing pact)
Glassbrook Brothers v Glasmorgan County Council: Where the promisee is under a public duty but does something which goes beyond what is required by the existing obligation (duty), then the promises of payment will be enforceable (i.e., the extra act can amount to consideration).
Williams v Roffey: If one party's promisee to perform an existing contractual duty to deliver good or services owned to a promisor confers an additional practical benefit and no duress is involved, the promisee will be sufficient consideration to make a promise given in return of the ``practical benefit" binding. (Increasing pact)
Re Selectmove Ltd: The Williams v Roffey practical benefit is not sufficient for promises for the part-payment of a debt. (Decreasing pact)
Stilk v Myrick: Performance of an existing contractual duty owned to a promisor is not normally consideration. (Increasing Pact)
Pinnel's Case: A debtor offer to pay a reduced sum back to the lender in full and final settlement will only be sufficient consideration if the lender 1) agrees to accept it without duress, and 2) the debtor provides some extract element that can be treated as consideration (e.g., paying early, paying using a more convenient mode of payment). Without something extra, part payment of an existing debt on or after the date for the payment will never provide consideration for a promise to forgo the balance. (Decreasing pact)
Glassbrook Brothers v Glasmorgan County Council: Where the promisee is under a public duty but does something which goes beyond what is required by the existing obligation (duty), then the promises of payment will be enforceable (i.e., the extra act can amount to consideration).
Williams v Roffey: If one party's promisee to perform an existing contractual duty to deliver good or services owned to a promisor confers an additional practical benefit and no duress is involved, the promisee will be sufficient consideration to make a promise given in return of the ``practical benefit" binding. (Increasing pact)
Re Selectmove Ltd: The Williams v Roffey practical benefit is not sufficient for promises for the part-payment of a debt. (Decreasing pact)