Total Failure of Consideration in UK Law

Leading Cases
  • Rover International Ltd v Cannon Film Sales Ltd
    • Court of Appeal (Civil Division)
    • 25 May 1988

    The question whether there has been a total failure of consideration is not answered by considering whether there was any consideration sufficient to support a contract or purported contract. The test is whether or not the party claiming total failure of consideration has in fact received. any part of the benefit bargained for under the contract or purported contract.

    And delivery and possession were not what Rover had bargained for. The relevant bargain, at any rate for present purposes, was the opportunity to earn a substantial share of the gross receipts pursuant to Clause 6 of the Schedule, with the certainty of at least breaking even by recouping their Advance. Due to the invalidity of the Agreement Rover got nothing of what they had bargained for, and there was clearly a total failure of consideration.

  • Westdeutsche Landesbank Girozentrale v Islington London Borough Council
    • Court of Appeal (Civil Division)
    • 17 Dec 1993

    I do not see why a similar process of severance should not be applied where what has happened, in a purely financial matter, is that there has been a payment of money one way and a payment of smaller sums of money the other way. The effect of severance is that there has been a total failure of consideration in respect of the balance of the money which has not come back.

  • Crown Prosecution Service v Eastenders Group
    • Supreme Court
    • 08 May 2014

    In the present case there was a total failure of consideration in relation to the receiver's rights over the companies' assets, which was fundamental to the basis on which the receiver was requested by the CPS and agreed to act. I use the expression "fundamental to the basis" because it should not be thought that mere failure of an expectation which motivated a party to enter into a contract may give rise to a restitutionary claim.

  • Westdeutsche Landesbank Girozentrale v Islington London Borough Council [QBD (Comm)]
    • House of Lords
    • 07 Jun 1996

    That promise was ultra vires and void: therefore the consideration for the payment of the money wholly failed. The essence of the swap agreement is that, over the whole term of the agreement, each party thinks he will come out best: the consideration for one party making a payment is an obligation on the other party to make counter-payments over the whole term of the agreement.

  • Nova (Jersey) Knit Ltd v Kammgarn Spinnerei G.m.b.H.
    • House of Lords
    • 16 Feb 1977

  • Stocznia Gdanska SA v Latvian Shipping Company and Others
    • House of Lords
    • 26 Feb 1998

    In truth, the test is not whether the promisee has received a specific benefit, but rather whether the promisor has performed any part of the contractual duties in respect of which the payment is due.

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  • Finance Act 2016
    • UK Non-devolved
    • January 01, 2016
    ...... at the dividend upper rate.Rule 2A: If the total" of D and U is more than £5,000—(a) the first \xC2"... (3) In section 554Z8 (cases where consideration" given for relevant step) in subsection (5), omit \xE2"... this does not prevent the correction of a failure to comply with subsection (4)). . (6) If ......
  • Criminal Justice and Courts Act 2015
    • UK Non-devolved
    • January 01, 2015
    ...... . . (2) A failure to observe a code issued under this section does ... Young Persons Act 1933 (general considerations). . . (2E) Where-. . (a) an appropriate ... . (a) reduce the total number of hours or days to which the order ......
  • Care Act 2014
    • UK Non-devolved
    • January 01, 2014
    ...... an adult's needs under section 18 if the total of the costs accrued in meeting the adult's ... Provider failure Provider failure . S-48 . Temporary duty on ... . . (c) either the consideration for the transfer was less than the value of the ......
  • Corporate Insolvency and Governance Act 2020
    • UK Non-devolved
    • January 01, 2020
    ...... did not have a reasonable excuse for the failure commits an offence. . (5) If the monitor ... more relevant payments to a person that (in total) exceed the specified maximum amount only if— . ... allotment of shares for non-cash consideration), in subsection (7)(b)(i), after “Part 26” ......
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