Contract - Part Payment, Promissory Estoppel, Duress Cases Flashcards
Stilk v Myrick
Performance of an existing contractual duty owed to the other party will not be sufficient consideration in exchange for the promise from the other party for more money
Scottson v Pegg
Performance of an existing contractual duty owed to a third party to the contract may amount to valid consideration for a new promise.
Hartley v Ponsonby
(similar to Stilk v Mirick except more crew deserted)
Exceeding contractual obligations will amount to consideration (question of public policy and degree).
Foakes v Beer
Part payment of a debt is not usually consideration for a promise by creditor to forgo the balance due.
Williams v Roffey Bros & Nicholls Ltd
In cases where the defendant has received a practical benefit and where there is no evidence of duress or fraud, performance of contractual duties may amount to sufficient consideration.
LJ Glidewell criteria:
1) Existing contract
2) Party paying has reasonable doubt the performing party can complete
3) Party paying promises extra payment to ensure completion
4) Paying party receives practical benefit / obviation of disbenefit
5) No Duress
Central London Property Trust Ltd v High Trees House Ltd
Consideration - promissory estoppel
Where a party to a contract has, by words or conduct, made promise to the other to forgo a legal right, then once the other party has acted on it he will have a good defence to any claim brought by the promisor.
Pinnel’s case
Part payment of a debt is not usually consideration for a promise by creditor to forgo the balance due unless it can be shown on that something different was offered and was accepted by the creditor e.g. different product or early repayment of a smaller sum.
Welby v Drake
Part payment of a debt is not usually consideration for a promise by creditor to forgo the balance due unless it can be shown on that something different was offered and was accepted by the creditor e.g. payment by a third party
Barton v Armstrong
Duress - Physical threats
D threatened to kill C if he didn’t buy shares in the country - also made economic sense
Duress may take the form of violence; need not be the only reason, merely an influencing factor.
Atlas Express v Kafco
Duress - illegitimate threat
Haulage company - secured contract then threatened to not deliver unless more money
Where a party has threatened to breach contract or commit a tort and where the other party has no practical alternative but to agree to new terms = duress.
Carillion Construction Ltd v Felix (UK) Ltd
Duress - definition & application (from DSND Petroleum)
Actionable duress is where there is
1) illegitimate pressure
2) whose practical effect is that there is compulsion on, or a lack of practical choice for, the victim
3) which is a significant cause inducing C to enter into a contract.
Adam Opel GmbH Renault SA v Mitras Automobile Ltd
Component delivery - notice + price increase
Where there is duress, the agreement obtained under duress can be voided and amounts paid recovered.
Atlantic Baron
Economic Duress
Ship builders - extra money - delay
Rescission will be available except where one of the barriers apply e.g. undue delay. Payment of extra money under duress when it is not crucial to guaranteeing performance and a delay of 8 months will effectively bar rescission.
The Sibeone and the Sibotre
Duress to goods - but for test
DSND subsea v Petroleum Geo Services ASA
Economic Duress - Definition
1) Illegitimate pressure
2) Lack of practical choice
3) Significant cause
