Contract Consideration in UK Law

Leading Cases
  • Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd
    • House of Lords
    • 15 Jun 1942

    It is clear that any civilised system of law is bound to provide remedies for cases of what has been called unjust enrichment or unjust benefit, that is to prevent a man from retaining the money of or some benefit derived from another which it is against conscience that he should keep.

  • Hedley Byrne & Company Ltd v Heller & Partners Ltd
    • House of Lords
    • 28 May 1963

    Furthermore, if in a sphere in which a person is so placed that others could reasonably rely upon his judgment or his skill or upon his ability to make careful inquiry, a person takes it upon himself to give information or advice to, or allows his information or advice to be passed on to, another person who, as he knows or should know, will place reliance upon it, then a duty of care will arise.

    I think, therefore, that there is ample authority to justify your Lordships in saying now that the categories of special relationships which may give rise to a duty to take care in word as well as in deed are not limited to contractual relationships or to relationships of fiduciary duty, but include also relationships which in the words of Lord Shaw in Nocton v. Ashburton at page 972 are "equivalent to contract" that is, where there is an assumption of responsibility in circumstances in which, but for the absence of consideration, there would be a contract.

  • Hong Kong Fir Shipping Company Ltd v Kawasaki Kisen Kaisha Ltd
    • Court of Appeal
    • 20 Dec 1961

    The test whether an event has this effect or not has been stated in a number of metaphors all of which I think amount to. the same thing; Does the occurrence of the event deprive the party who has further undertakings still to perform of substantially the whole benefit which it was the intention of the parties as expressed in the contract that he should obtain as the consideration for performing those undertakings?

  • Trentham (G Percy) Ltd v Archital Luxfer Ltd
    • Court of Appeal (Civil Division)
    • 20 Jul 1992

    The fact that the transaction was performed on both sides will often make it unrealistic to argue that there was no intention to enter into legal relations. It will often make it difficult to submit that the contract is void for vagueness or uncertainty. Specifically, the fact that the transaction is executed makes it easier to imply a term resolving any uncertainty, or, alternatively, it may make it possible to treat a matter not finalised in negotiations as inessential.

  • Great Peace Shipping Ltd v Tsavliris Salvage (International) Ltd (Cape Providence)
    • Court of Appeal (Civil Division)
    • 14 Oct 2002

    (i) there must be a common assumption as to the existence of a state of affairs; (ii) there must be no warranty by either party that that state of affairs exists; (iii) the non-existence of the state of affairs must not be attributable to the fault of either party; (iv) the non-existence of the state of affairs must render performance of the contract impossible; (v) the state of affairs may be the existence, or a vital attribute, of the consideration to be provided or circumstances which must subsist if performance of the contractual adventure is to be possible.

  • Hillas & Company Ltd v Arcos Ltd
    • House of Lords
    • 05 Jul 1932

    There is then no bargain except to negotiate, and negotiations may be fruitless and end without any contract ensuing: yet even then, in strict theory, there is a contract (if there is good consideration) to Legotiate, though in the event of repudiation by one party the damages may be nominal, unless a jury think that the opportunity to negotiate was of some appreciable value to the injured party.

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Legislation
  • Supply of Goods and Services Act 1982
    • UK Non-devolved
    • January 01, 1982
    ...... amend the law with respect to the terms to be implied in certain contracts for the transfer of the property in goods, in certain contracts for the ...deed and for which there is no consideration other. than the presumed consideration imported by the deed;. .   . ( ......
  • The Employment Tribunals (Constitution and Rules of Procedure) Regulations 2013
    • UK Non-devolved
    • January 01, 2013
    ...... “employee’s contract claim” means a claim brought by an employee in accordance with articles ... (d) avoiding delay, so far as compatible with proper consideration of the issues; and . (e) saving expense. . A Tribunal shall seek to give ......
  • The Public Contracts Regulations 2015
    • UK Non-devolved
    • January 01, 2015
    ....... (8) In the case of framework agreements and dynamic purchasing systems, the value to be taken into consideration shall be the maximum estimated value, net of VAT, of all the contracts envisaged for the total term of the framework agreement or the dynamic ......
  • Inheritance (Provision for Family and Dependants) Act 1975
    • UK Non-devolved
    • January 01, 1975
    ......than for full valuable consideration, was making a substantial. contribution in money or money's worth towards ...made before the commencement of this Act. S-11 . Contracts to leave property by will. 11 Contracts to leave property by will. . (1) ......
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Books & Journal Articles
  • Contract, Consideration and the Critical Path
    • Nbr. 53-4, July 1990
    • The Modern Law Review
  • How does performance history impact supplier selection in public sector?
    • Nbr. 115-1, February 2015
    • Industrial Management & Data Systems
    • 107-128
    Purpose: – The purpose of this paper is to study if the performance history impacts supplier selection in the French public sector context. While French public procurement legislation forbids consi...
    ......While French public procurement legislation forbids consideration of the past contract wins in supplier selection, public contractors may ......
  • REVIEWS
    • Nbr. 3-1, June 1939
    • The Modern Law Review
    Book reviewed in this article: Cardozo and Frontiers of Legal Thinking. By Beryl Harold Levy. New York: The Personality Conception of the Legal Entity. Harvard Studies in the Conflict of Laws, Vol....
    ...... Lehman, and of his influence on the American law of contract and tort from two masters in those fields, Professor Corbin of ... E. WYNDHAM WHITE. CONSIDERATION IN THE LAW OF .SIMPLE CONTRACT, being the Lee mllag prfee of ......
  • The Liabilities of Financial Intermediaries and Their Advisers for Handling the Proceeds of Crime
    • Nbr. 9-3, March 2002
    • Journal of Financial Crime
    • 227-238
    This paper considers the rules of English law which apply to fix financial intermediaries and their advisers with liability for handling the proceeds of crime. Consideration of this topic falls int...
    ...... i n civi l law , includin g liabilit y fo r breac h o f contract ; liabilit y a s constructiv e trustee ; liabilit y fo r mone y ha ... recipien t i s a bona fide purchase r fo r valuabl e consideration . Wher e a ban k receive s fund s i n reductio n o r discharg e ......
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Law Firm Commentaries
  • Losing the longstop: High Court decision highlights importance of clearly drafted longstop clauses
    • JD Supra United Kingdom
    In Damoco (Bermuda) Ltd and Others v Atlanta Bidco Ltd, the High Court rejected claims as to the longstop date for accounts needed to calculate a contractual payment. Instead, the Court adopted a m...
    ...... as to the longstop date for accounts needed to calculate a contractual payment. Instead, the Court adopted a much narrower interpretation of the ...The SPA included deferred consideration provisions. If the Target group's 2019 EBITDA met certain criteria, the ......
  • Consideration for Covenants
    • JD Supra United Kingdom
    The recent UK High Court decision in Re-use Collections Limited v Sendall & May Glass Recycling Ltd, highlights to employers that new restrictive covenants will not be enforceable against emplo...
    ...... . Introduction. . Employers are well advised regularly to review the restrictive covenants in their employees’ employment contracts to ensure that they remain appropriately drafted and enforceable. This may be particularly appropriate in relation to businesses which employers ......
  • Meaning of “Commencement of Drilling”: Summary of Vitol E & P Limited v Africa Oil and Gas Corporation [2016] EWHC 1677 (Comm)
    • JD Supra United Kingdom
    Introduction - In a dispute arising in connection with a sale and purchase agreement for an interest under a Production Sharing Contract in the Congo, an English court (the Que...
    ...... and purchase agreement for an interest under a Production Sharing Contract in the Congo, an English court (the Queen's Bench Division of the High ... the Claimant and New Age, New Age would pay part of the consideration up front at the time of the transfer of shares, and then either (i) bear ......
  • Is your letter of intent a patchwork of provisions?
    • JD Supra United Kingdom
    Lawyers will generally recommend that you agree and sign a formal contract before starting work on site. That said, despite good intentions, commercial necessity often requires parties to start the...
    ...... Lawyers will generally recommend that you agree and sign a formal contract before starting work on site. That said, despite good intentions, ... - that is, there must be: certainty as to the key terms; consideration; and both parties must have a mutual intention to enter into a binding ......
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