A Promise Unsupported by Consideration
Info: 2668 words (11 pages) Essay
Published: 6th Aug 2019
Jurisdiction / Tag(s): UK Law
In general a promise unsupported by consideration is not a binding contract. Consideration was defined by Sir Frederick Pollock as an act off forbearance of one party or the promise thereof, is the price of which the promise of the other is bought and the promise. Thus given for value is affordable. Paying and promising to pay money in return for the supply of goods or services constitutes the most common form of consideration.
And consideration is also about the mere fact of an agreement that does not make a contract. Both parties must be providing to the contract. If they wish to sue on contract. Consideration may be in 2 types where is executory and executed. Executory where is a promise is given for a promise or it may be executed where an act or a forbearance is given to a promise. For example; if the customer pay a pound booking or ordering it is call executed consideration. If the customers pays the contract price at a later agree by both parties it is call executory consideration.
1.1 In the case of Balfour v Balfour [1919] 2 KB CA
There was a case between husband and wife. When the husband want to leave his wife to his work in England, husband promise to pay 30 pounds a month for his wife until he return. And exchange for her agreement to support herself without calling on his husband for any other maintenance. The court says although there is consideration in his wife promise, there was no contract at all. There are many agreement, said Atkin LJ, including most agreement between husband and wife, which is the parties never intended they might be sued upon. Agreements such as these are outside the realm of contract. Therefore the performance of an existing duty should not constitutes in new consideration.
Compared with the case of Merritt v Merritt [1970] 2 ALL ER 760, CA
There was a case between a husband and wife too. This case is saying husbands left his wife alone and live with another woman. Therefore the husband promise will pay his wife £40 for a month, and there made a written contract that is in consideration of his wife for paying off the mortgage of their jointly owned house. And will transfer it to his wife sole ownership. In these case, said Lord Denning MR, the court looks at the situation in which they were placed and ask whether reasonable people would regard this agreement as one intended to be binding. So that the performance of an existing duty should constitutes in new consideration.
I agree with these two cases. In the case of Balfour v Balfour [1919] 2 KB CA there is not take place in consideration because there is no contract at all. Because there was a case between a husband and wife, there is no any contract at all and beside that, when the wife promise to exchange something from his husband. The husband want to sued his wife, but the husband cannot sued his wife because they two did not write a contract and there is no any evidence to sued her wife. Therefore this case is not considered with any consideration.
However the case of Merritt v Merritt [1970] 2 ALL ER 760, CA , although the husband want to leave his wife and live with another woman, when his wife wanted to sued him, but the court did not take place in these case because the husband already written a contract to his wife and say that will pay his wife £40 a month, and say that he will paying off the mortgage on their jointly-owned house and transfer it to her sole ownership. So that this is considered in existing duty should have new consideration.
In the case Hartley v Ponsonby (1857):
The court said this promise was enforceable: the crew was so reduced that it was dangerous to sail on and the captain would have had no right to demand it. The original contract had come to an end, and the seaman were free to make a new contract on whatever terms might be agreed. And compared in the case of Glasbrook v Glamorgan CC [1925] AC 270, HL the court say the police undoubtedly have a general duty to do whatr they think necessary to keep the peace and [revent crime, and no one can be made to pay extra for that.
I disagree with the case of Glasbrook v Glamorgan CC [1925] AC 270, HL because I think that the court should not give the extra pay for the police. Although there is a duty to protect a coal mine during a strike, and proposed mobile units. The police shuld not take the extra money, and the extra money is give to the mine owner. And it was held that all the police must be given the protection for all the owner because this is their duty to do that, and they cannot sued the owner.
1.2Conclusion
There is some cases is consist with consideration. However, I agree with the two cases which is Balfour v Balfour [1919] 2 KB CA and Merritt v Merritt [1970] 2 ALL ER 760, CA. Because there is the case one is consider in new consideration and one did not consider in consideration. These two cases are talking about a husband and wife. And there is no any contract that between husband and wife. Although there is a case is saying a husband leave his wife and live with other woman, this case is should have new consideration. Because when the husband did not have the other woman, the husband already write down a contract to his wife. When he go to live with other woman, the husband will pay the wife £40 a month and therefore there is already a contract with them, so there should have a new consideration.
2.0 Introduction
What is contract law? Contract law is a set of rules that governing relationship contain and validly to an agreement between two or more person that regarding the sales of good, service and position exchange the internet or ownership. Contract law has been more formal define as promise or set of promises which the law will enforce. In the contract there are also consider in two types, there is offer and acceptance. Offer is an offer in an expression of willingness to be found by the terms of a contract. It can be made to one person (bilateral) or to a group of person or to the whole world at large call (Unilateral). While acceptance an acceptance off an offer is the final an unqualified assent to the terms of the offer. An acceptance weather oral or return must be communicated to the offeror before they can be a contract.
2.1 Definition of General Principle
I.T.L.R
OFFER + ACCEPTANCE
Consideration
Offer
An offer in an expression of willingness to be found by the terms of a contract. It can be made to one person(bilateral) or to a group of person or to the whole world at large call(Unilateral). A bilateral offer can take the form of a promise to do something in return for the promise of the offeree to do something. Therefore Unilateral offer is a one sided promise to pay or reward someone for performing an act. It is a one sided promise because it is made without the offeror knowing who the offeree is. Example in the case of Carlill v Carbolic Smoke Ball(1893) 1 QB 256. The Court of Appeal said the advertisement in this case was an offer; the wording of the advertisement clearly showed an intention to be bound to anyone accepting. An offer can be also made from orally return or by contract. If it is made from orally or in writing it is an express offer, if it is made by writing it is an imply offer. A genuine offer is different from what is known as an “invitation to treat”, Example where a party is merely inviting offers, which he is then free to accept or reject. The following are examples of invitations to treat.
Acceptance
An acceptance off an offer is the final an unqualified assent to the terms of the offer. An acceptance weather oral or return must be communicated to the offeror before they can be a contract. There are some rules for the acceptance, the acceptance for the rules includes the following: in the case of the Carlill v Carbolic Smoke Ball where the offeror expressly or implied waives the requirement for the communication. With the regards to the poster role acceptance is complete when the letter is posted or the telegram is communicated to a person authorize to receive it for transmission to the addressee. One acceptance has been communicated it cannot be withdraw but an offer can be revote anytime before there is accepted.
Intention to create legal relations
The parties must intend the agreement to be legally binding. In the case of involving social and domestic. Contractual intention is normally going to be presumed in cases involving commercial agreement. In the case involving social and domestic situation there is a presumption that the party do not intend to have legal relation. In the case of Balfour v Balfour(1919)2 KB 571, CA; there are many agreement including most agreement between husband and wife, which the parties never intended they might be sued upon. Therefore the agreement such as these are outside the realm of contracts altogether.
Consideration
In general a promise unsupported by consideration is not a binding contract. Consideration was define by Sir Frederick Pollock as an act off forbearance of one party or the promise thereof, is the price of which the promise of the other is bought and the promise. Thus given for value is affordable. Paying and promising to pay money in return for the supply of goods or services constitutes the most common form of consideration.
And consideration is also about the mere fact of an agreement that does not make a contract. Both parties must be providing to the contract. If they wish to sue on contract. Consideration may be in 2 types where is executory and executed. Executory where is a promise is given for a promise or it may be executed where an act or a forbearance is given to a promise. For example; if the customer pay a pound booking or ordering it is call executed consideration. If the customers pays the contract price at a later agree by both parties it is call executory consideration.
2.2Remedy for breach of contract
The remedy of breach of contract are as follows:
-rescission of contract
-damages
-specific performance
-injunction
-restitution
Rescission of contract
The acquit able remedy of rescission cab be use to describe either of the following to the situation. Where a contract is set the side by one party on the ground that the very formation of the contract has been negatively affected misrepresentation ford, corrosion or undue influence. Which in dues the parties to enter into the contract on the contract is twitted as those it never existed by the restoration of the parties to their original position or be where the contract is set by one party but it brings only future obligations to end and allows the party to sued for damages for breach of the contract. In the case of Car & Universal Finance v Caldwell [1964] 1 All ER 290, CA The courts interpret this fairly widely, however, as is appropriate in matters of equity, and are prepared to make consequential orders as necessary. The right to rescind for misrepresentation is lost if the representee has affirmed the contract
Damages
Damages are awarded to complain save the injured party for any consequences of the breach of contract. The section 74 of 1950 state the consequences of a breach of contract: …(1) when a contract has been broken, the party who suffers by the breach is entitle to receive from the party who had broken the contract a compensation for any lost or damage cause to him there by, which naturally argots in the usual cost of dealings from the breach or which the parties knew when they made the contract to be likely to result from the beach of it. Section 74 also have the above follows the common law rule laid down in the case of Hadley v Baxendale (1854). And also in the case of C & P Haulage v Middleton [1983] 3 All ER 94, CA the case is talking about a man hired a garage for six months and equipped it to meet his own particular needs. And no longer time the man is already terminate the contract ten weeks early, and the garage sued the man for the expense of equipping.
Specific performance
Specific performance is an adequately remedies where the court direct that the contract be performance according to it terms. As it is an equitable remedy it is given as a desecration of the court and is not available as of right. The provision governing this remedy are contain in the specific relief act 1950. Section 11 (1) of the specific relief act of 1950 give example pf circumstances when the court make, where the act which not perform was the performance of a trust. Where there is no standard the court can use to assets the damage cause by non performance. Where the plaintiff would not get etiquette relief if the act agree upon is not perform. Where money would not be an etiquette compassion. In the case of Patel v Ali [1984] 1 All ER 978, CA the court set a side an order for specific performance and awarded damages instead, saying that in all the circumstances such a decree would cause undue hardship and even though that did not relate directly to the subject matter of the contract.
Injunction
An injunction is an order of the court where by an individual has required to refrain from the feather doing of the act complain of … in the context of the contract, the remedy will be granted to enforce a negative stipulation in a contract in a case where it would unjess to complied plaintiff to an action for damages.
Restitution
A party who has entirely or in part perform his side of the contract and not receive the agree counter performance in full may sometimes be entitle to restitution in respect of his own performance. Where this consist of a payment of money the payor will simply seat to get it back; where it consist of some other benefit he claim recompense… in respect of it.
2.3Conclusion
Finally there are so many types of remedies in law. There are 5 types of remedies in law such as rescission of contract, damages, specific performance, injunction, restitution. Rescission of contract is The acquit able remedy of rescission cab be use to describe either of the following to the situation. Damages is Damages are awarded to complain save the injured party for any consequences of the breach of contract. Specific performance is an adequately remedies where the court direct that the contract be performance according to it terms. As it is an equitable remedy it is given as a desecration of the court and is not available as of right. Injunction is the remedy will be granted to enforce a negative stipulation in a contract in a case where it would unjess to complied plaintiff to an action for damages. Restitution are where this consist of a payment of money the payor will simply seat to get it back; where it consist of some other benefit he claim recompense in respect of it.
While general principles are consist of offer, acceptance, intention to create legal relation and consideration. Therefore offer is means that an expression of willingness to be found by the terms of a contract. It can be made to one person(bilateral) or to a group of person or to the whole world at large call(Unilateral). Acceptance mean that an offer is the final an unqualified assent to the terms of the offer. An acceptance weather oral or return must be communicated to the offeror before they can be a contract. Intention to create legal relation is the parties must intend the agreement to be legally binding. In the case of involving social and domestic. At last, consideration mean that an act off forbearance of one party or the promise thereof, is the price of which the promise of the other is bought and the promise. Thus given for value is affordable.
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