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.

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

    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. Most contracts are entered into with intentions or expectations which may not be fulfilled, and the allocation of the risk of their non-fulfilment is a function of the contract.

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

  • Sharma and another v Simposh Ltd
    • Court of Appeal (Civil Division)
    • 23 November 2011

    The confusion is caused by the fact that the term "consideration", when used in the phrase "total failure of consideration" as a reason for restitution, does not mean quite the same thing as it does when considering whether there is sufficient "consideration" to support the formation of a valid contract. Viscount Simon LC, explained this in Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd [1943] AC 32, 48:

  • Stocznia Gdanska SA v Latvian Shipping Company and Others
    • House of Lords
    • 26 February 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.

  • Westdeutsche Landesbank Girozentrale v Islington London Borough Council
    • House of Lords
    • 07 June 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 February 1977

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Legislation
  • Energy Act 2016
    • UK Non-devolved
    • January 01, 2016
    ...... (1) so as to secure—(a) that the total amount of licensing levy which is payable in ... warrant, in the circumstances, its consideration by the OGA;(f) the OGA considers it unlikely ... a sanction notice in respect of that failure. . (2) If the OGA considers that there has a been ......
  • Environment Act 2021
    • UK Non-devolved
    • January 01, 2021
    ...... reporting period may include—(a) consideration of how progress could be improved, and(b) ...The OEP's enforcement functions . 31: Failure of public authorities to comply with .... (10) A report must set out— . (a) the total payments received under arrangements under this ......
  • The Insolvency (England and Wales) Rules 2016
    • UK Non-devolved
    • January 01, 2016
    ....... the purpose of the consideration; and . the outcome of the consideration .... (5) The statement must set out—(a) the total number of hours spent on the matter during that ... allowed, the liquidator must report the failure to the court, which may discharge the order ......
  • Criminal Justice and Courts Act 2015
    • UK Non-devolved
    • January 01, 2015
    ...... conditions imposed under section 62.(2) A failure to observe a code issued under this section does ... not prevent a court taking into consideration the nature of the evidence placed before it when ......
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Books & Journal Articles
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Law Firm Commentaries
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