Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. It decided that in varying a contract, a promise to perform a pre-existing contractual obligation will constitute good consideration so long as a benefit is conferred upon the 'promiseor'. There is no consideration because you’re providing me with nothing valuable that the situation did not already require. In such circumstances, I’d be unable to sue for the remaining £8. In your opinion, should Williams v Roffey Bros [1991] 1 QB 1 be considered as wrongly decided? ‘a pragmatic approach to the true relationship between the parties’. Oxford University law student Jordan Briggs explains how the Supreme Court missed an opportunity to clear up the confusion. The contract had a penalty clause for late completion. In debt cases, the law is pulled in two different directions; Williams v Roffey suggests that a ‘practical beneficial’ could constitute the consideration required to bind a creditor to their promise not to sue for the rest of the debt. Whether performance of an existing duty can amount to consideration. Consequently, the promise for extra pay was enforceable. To understand Pinnel’s rule and its exception, we must discuss the doctrine of consideration. Note, however, that if you were required to provide that ‘valuable thing’ anyway (by a pre-existing contractual or legal obligation), it will not constitute consideration and your promise will attract no legal consequence. The contract had a penalty clause for late completion. The second question was very exciting. Four have applied Lord Sumption’s dictum that so-called ‘entire agreement clauses’ are effective in rendering contractually binding only what forms the parties’ written agreement; thereby excluding any prior arrangements or understandings that parties shared before finalising the contract. Roffey Bros (the defendant) counter claimed for the sum of £18,121.46. The reasoning in Williams v Roffey Bros has been doubted in subsequent cases, although it has not been overruled. Case Summary In that case, consideration was found to be present in the practical benefit received by the promisor even though the promise was to perform an existing contractual duty. Williams v Roffey Bros and Nicholls (Contractors) Ltd (1990) 1 All ER 512 . The appellants relied on Stilk v Myrick (1809) 2 Camp 317 where it was held that performance of an existing duty was not good consideration. Unfortunately Mr. Foakes was in financial difficulty and Mrs. Beer was in danger of receiving none of the debt that she was owed. As of June 2019, MWB v Rock has been cited fifteen times. The House of Lords held that Mrs. Beer could recover the interest because Mr. Foakes had provided no consideration to bind her to her promise to forego it. disagrees with the precedent, even if he considers it to have been wrongly decided, even if to follow the precedent may lead to injustice in the present case. Williams argued that Roffey Bros had provided no consideration to support the promise of extra payment because, by promising to complete the carpentry work, Roffey Bros were doing nothing that they were not already contractually obliged to do. The Decision In Williams V Roffey Roffey contracted with, Williams, to do some carpentry work. © Copyright 2020 Legal Cheek Ltd. All Rights Reserved. The uncertainty Williams v Roffey introduced into this area of law will remain unresolved until an enlarged panel of the Supreme Court takes another case directly on this point. Williams ran in financial difficulty and needed more money to continue the work. Looking for a flexible role? When Williams fell behind with his work the appellants offered him bonus payment to finish on time. We begin in 1602 with ‘Pinnel’s case’. He plans to complete a masters before pursuing a career at the bar. Reference this They suggested that "the inconvenience and possible injustice result We use cookies to give you the best possible experience on our website. This essay will discuss the impact of Williams v Roffey Bros & Nicholls (Contractors) Ltd [1989] EWCA Civ 5 on the doctrine of consideration. The notion of a ‘cultural benefit’, he concluded, is ‘uncomfortably close to the expectation of a practical benefit which, according to Peter Gibson LJ’s judgment in Selectmove, will not do as consideration’. If you promise to wash my car, and I give you £20 in return, it is said that your promise is ‘supported’ by my £20 and you may be legally bound to honour it. The judge awarded £3500 in damages plus £1400 interest and costs to Williams, and dismissed Roffey … However, the Williams v Roffey Bros. case was totally the opposite to the stilk v Myrick case. Give reasons for your answer. Thus, the decision in Williams v Roffey 7 brothers signifies the difference been put forward in Stilk v Myrik 8. This payment was accepted and the flats were completed in good time. At the time of writing, the part payment question has been considered only once. Such analysis, his Lordship suggested, would require ‘an enlarged panel of the court… in a case where the decision would be more than obiter dictum’. The Decision. A promise may only carry legal consequence if something valuable is exchanged. £5 2s 6d marking services can help you with your studies Briggs is leading! Since then addition, it pointed out that Williams v Roffey Bros & Nicholls ( )... You decide to give you the best possible experience on our website judgment, kerr J noted the that! And if not, why not his promise to pay £5,000 third claim. Give me a bunch of flowers initially established in Stilk v Myrick case was in danger receiving. “ take your money and move on ” approach remaining £8 accept £12 satisfaction... Writers, as a learning aid to help you lawyers held their breath as Supreme. Move from the Supreme Court: 1 ) Williams v Roffey Bros & Nicholls ( Contractors Ltd... 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