Doctrine of Consideration in UK Law

Leading Cases
  • Tesco Plc v Commissioners of Customs and Excise
    • Chancery Division
    • 21 October 2002

    As I understood the argument, the Commissioners accepted this analysis as a matter of domestic law. But both parties accepted that for the purpose of VAT law the term "consideration" has an autonomous meaning determined in accordance with European community, not domestic, law. The point on which they differed was the nature of this autonomous meaning.

  • 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.

    It would be surprising if the sort of problem that is created by the facts of this case had never until recently arisen in English law. As a problem it is a by-product of the doctrine of consideration. If the Respondents had made a nominal charge for the reference, the problem would not exist.

  • Hill and another v Haines
    • Court of Appeal (Civil Division)
    • 05 December 2007

    If one considers the economic realities, the order of the court quantifies the value of the applicant spouse's statutory right by reference to the value of the money or property thereby ordered to be paid or transferred by the respondent spouse to the applicant. In the case of such an order, whether following contested proceedings or by way of compromise, in the absence of the usual vitiating factors of fraud, mistake or misrepresentation the one balances the other.

    Finally, as to policy, it would be unfortunate in the extreme if a court approved, or even (an a fortiori case) a court determined property adjustment order would be liable, in practice, to be undone for up to five years because the husband goes bankrupt within that period.

  • Johnson v Gore Wood & Company (A Firm)
    • House of Lords
    • 14 December 2000

    That is to adopt too dogmatic an approach to what should in my opinion be a broad, merits-based judgment which takes account of the public and private interests involved and also takes account of all the facts of the case, focusing attention on the crucial question whether, in all the circumstances, a party is misusing or abusing the process of the court by seeking to raise before it the issue which could have been raised before.

    It is one thing to refuse to allow a party to relitigate a question which has already been decided; it is quite another to deny him the opportunity of litigating for the first time a question which has not previously been adjudicated upon. This latter (though not the former) is prima facie a denial of the citizen's right of access to the court conferred by the common law and guaranteed by Article 6 of the Convention for the Protection of Human Rights and Fundamental Freedoms (Rome, 4th.

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Legislation
  • Trusts of Land and Appointment of Trustees Act 1996
    • UK Non-devolved
    • January 01, 1996
    ... ... provision phasing out the Settled Land Act 1925, abolishing the doctrine of conversion and otherwise amending the law about trusts for sale of ... of this Act, land becomes charged voluntarily (or in consideration of marriageF12or the formation of a civil partnership) or by way of family ... ...
  • Land Registration Act 2002
    • UK Non-devolved
    • January 01, 2002
    ... ... transfer of a qualifying estate—(i) for valuable or other consideration, by way of gift or in pursuance of an order of any court, ... (ii) by ... ...
  • Law of Property Act 1925
    • UK Non-devolved
    • January 01, 1925
    ... ... valuable consideration to execute a proper conveyance ... when the infant attains full age, and ... (1) The doctrine of interesse termini is ... hereby abolished ... (2) As from the ... ...
  • Trustee Act 1925
    • UK Non-devolved
    • January 01, 1925
    ... ... payment of the consideration, or renounce such right, or ... assign for the best consideration that can ... out of the doctrine of election or otherwise, the court ... may declare— ... ) that any of ... ...
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Books & Journal Articles
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Law Firm Commentaries
  • Inconsiderate Variation
    • Mondaq UK
    ... ... Recycling Limited, the court was asked to consider if valid consideration had been given to support a new restrictive covenant introduced during the ... for themselves the relative value of the bargain.  This legal doctrine of consideration also applies to contracts of employment and variations to ... ...
  • Adjudicators' Entitlement To Payment Secured
    • Mondaq United Kingdom
    ... ... The Judge considered the doctrine of "total failure of consideration."  Essentially, if the contract ... ...
  • Towards a European Contract Law for Consumers and Businesses: A Trojan Horse?
    • Mondaq United Kingdom
    ... ... is one of a bargain (a typical example being a supply for a consideration, such as of goods and services, for a price), whereas in civil law the ... The much broader scope of the doctrine of mistake incorporated into the draft CFR is in contra-distinction to the ... ...
  • Consideration And Deeds
    • Mondaq UK
    ... ... across various legal jurisdictions, and their general principles ... are familiar to lawyers worldwide. However, the doctrine of ... considerationhas own specific features in English law ... The principle of consideration states that a promise to perform ... an obligation ... ...
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