The Alliance Bank Ltd v Broom
| Jurisdiction | England & Wales |
| Judgment Date | 21 November 1864 |
| Date | 21 November 1864 |
| Court | High Court of Chancery |
English Reports Citation: 62 E.R. 631
HIGH COURT OF CHANCERY
S. C. 34 L. J. 256; 10 (N. S.) 1121; 11 L. T. 332; 13 W. R. 127. See Leask v. Scott, 1877, 2 Q. B. D. 378; Miles v. New Zealand Alford Estate Company, 1886, 32 Ch. D. 278; Reichel v. Bishop of Oxford, 1887-89, 35 Ch. D. 69; 14 App. Cas. 259; Fullerton v. Provincial Bank of Ireland. [1903], A. C. 313.
Demurrer. Consideration for Agreement. Existing Debt.
[289] the alliance bank (limited) v. beoom. Nov. 14, 21,1864. [S. C. 34 L. J. Ch. 256 ; 10 Jur. (N. S.) 1121; 11 L. T. 332 ; 13 W. E. 127. See Leask v. Scott, 1877, 2 Q. B. D. 378; Miles v. New Zealand Alford Estate Company, 1886 32 Ch. D. 278; Beichel v. Bishop of Oxford, 1887-89, 35 Ch. D. 69; 14 App. Gas. 259 ; Fullerton v. Provincial Bank of Ireland [1903], A. C. 313.] Demurrer. Consideration for Agreement. Existing Debt. Where a customer being called on by bankers to give security for money due from him on a loan-account agreed by letter to give security, and a bill which had been filed to enforce such agreement was demurred to, on the ground that the agreement was without consideration: Held, that the forbearance of the bank tovenforce payment of the existing debt, in consequence of the agreement, was a sufficient consideration to support it; and the demurrer was overruled. This case came on upon a demurrer. It appeared from the bill that in June 1864 the Alliance Bank opened a loan-account with the Defendants, who are merchants at Liverpool, and that such loan-.account was continued down to the 19th of September 1864, when there was a balance due from the Defendants to the bank on such loan-account, to the amount of £22,205, 15s. Id. On the 19th of September 1864 the Plaintiffs requested the Defendants, Messrs. Broom, to give them some! security for the amount so due, and the Defendants, who stated that they were entitled to certain goods, wrote to the manager of the bank the following letter:- "Liverpool, 19th Sept. 1864.-Dear Sir,-We hand you the following particulars of 632 THE ALLIANCE BANK V. BROOM a DR. ft SM. 290. produce which we propose to hypothecate against our loan-account, and at the same time undertake to pay the proceeds as we receive them, to the credit of the said account." The letter then contained a list of goods and their values, and was signed by Messrs. Broom. In pursuance of this letter the Plaintiffs, on the [290] 20th of September 1864, applied to the Defendants for...
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Sea-Land Service Inc v Cheong Fook Chee Vincent
... ... In support of his contentions, he relied in his written case on Alliance Bank (Ltd) v Broom ... In the Alliance Bank case,6 the defendants owed a sum of money to the ... ...
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R v Attorney General of England and Wales
...need not discuss. But the actual forbearance was in their Lordships' opinion sufficient consideration to support the contract. In Alliance Bank Ltd v Broom (1864) 2 Dr & Sm 289, 292 the bank demanded security for its loan in circumstances in which, as Sir Richard Kindersley V-C said, it wou......
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Malayan Banking Bhd v Lauw Wisanggeni
...to sue, even for a short time, may, in appropriate circumstances, be consideration for a promise (see Alliance Bank Ltd v Broom (1864) 2 Dr & Sm 289). Lauw admitted that Kang, who was then in financial trouble, persuaded him to provide credit support by furnishing security to the bank. Ther......
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Banking Law
...to sue, even for a short time, may, in appropriate circumstances, be consideration for a promise (see Alliance Bank Ltd, The v Broom(1864) 2 Dr & Sm 289; (1864) 62 ER 631). Lauw admitted that Kang, who was then in financial trouble, persuaded him to provide credit support by furnishing secu......