Term
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Definition
| For D. P furnished no consideration for what they were already bound to do under contract. To hold against D would be against good public policy |
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Term
| Dempster v. Bauld (1905) NS |
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Definition
| Ratio: Pre-existing duty is not sufficient consideration for a new contract, unless something is promised that is over and above what the party is already bound to do under contract. |
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Term
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Definition
Ratio: Part payment of a debt is not good consideration. Accord (agreement) & satisfaction (consideration) is required.
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Term
| Bank of Nova Scotia v. Maclellan (1977) |
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Definition
| Ratio: Lesser amount, plus something else of value, can discharge a larger sum. (Limits rule in Foakes v. Beer). |
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Term
| Hirachand v. Punamchand & Temple (1911) KB |
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Definition
Ratio: Part payment of a debt by a third party will extinguish that debt.
There is an exception to the rule in Foakes with respect to arrangements between a debtor and his or her various creditors. Where the agreement is made with a third person the creditor’s promise is enforceable.
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Term
| Effective Accord and Satisfaction |
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Definition
- Seal
- Additional or New Consideration (hawk, horse, robe tomtit or peppercorn)
- Composition of Creditors
- Payment by third party
- Estoppel
- Mercantile Amendment Act (ONTARIO)
- Part Performance
- Expressly accepted or
- Rendered in pursuance of an agreement for that purpose (probs. around)
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Term
| Kaulbach v. Eichel (1930) NSSC |
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Definition
| Ratio: a lesser sum cannot be given in satisfaction of a greater sum, although if something else is given in addition to the lesser sum, it will be seen as sufficient consideration to support a promise to extinguish the debt even if value is less than the existing debt. |
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Term
| Vanbergen v. St. Edmunds Properties Ltd. (1933) KB |
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Definition
| Ratio: Location of payment, or method of payment, can constitute consideration where it was not bargained for initially by the parties and it acts as a benefit/detriment/extra to the contract. |
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Term
| Foot v. Rawlings (1963) SCC |
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Definition
| Ratio: If a creditor accepts payment in a different form, like a negotiable instrument, it will amount to consideration for a promise to extinguish a debt. |
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Term
| D & C Builders Ltd. v. Rees (1966) QB CA |
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Definition
Ratio: Threatening the owed party to “take a certain amount or get nothing” is to exercise duress and court will regard it as unconscionable; therefore not “true” accord.
Also, no difference between a cheque and cash, for purposes of consideration.
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Term
| Shadwell v. Shadwell (1860) NS |
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Definition
| The marriage could be a loss sustained by P (promisee) or a benefit to Uncle. |
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Term
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Definition
| Ratio: The promise to perform or the performance of an existing statutory duty and no more can be good consideration since it is a benefit to the promisee. |
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Term
| Williams v. Williams (1957) Eng CA |
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Definition
Ratio: A promise to perform an existing duty was good consideration for a new promise “as long as there is nothing in the transaction which is contrary to public interest.”
- This is essentially an affirmation of Ward.
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Term
| Glasbrook Bros. Ltd. v. Glamorgan County Council (1925) HL |
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Definition
Ratio: The introduction of fresh consideration (‘superfluity’) is sufficient consideration even if one party is bound by statute to provide such a type of service.
Case suggests bound to pay public servants when they go the extra length
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Term
| Roscorla v. Thomas (1842) QB |
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Definition
| Ratio: A promise must be co-extensive with the consideration. Generally, consideration past and executed will support no other promise than as would be implied by law. |
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Term
| Spencer v. Hemmerde (1922) HL |
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Definition
| Ratio: An acknowledgment of an existing duty is a new promise and the old debt serves as consideration for the promise. |
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Term
| Rex v. Rash (1923) Ont. SC |
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Definition
| Ratio: Contracts made with minors are valid only where the minor chooses to honour the contract or where the contract is for the necessities of life. |
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