Contract Law Case Notes is a collection of over 150 key case notes for contract law in the UK. Each Note consists of the name of the case and year, the subject matter, Facts, Holding, and Rule.
Williams v Roffey Bros. & Nicholls (Contractors) Ltd (1991)
Consideration and Promissory Estoppel–Past Consideration & Existing Obligations
FACTS: Sub-contractors were promised extra payment if they completed work on time
HELD: there has been the provision of valuable consideration. The benefit held to have been received by the other party (the contractors, that is) was that penalty clauses for late work were avoided
RULE: factual benefits given from one to another party can be consideration: Gladwell’s five points:
- i) entered into a contract
- ii) has reason to doubt it will be fulfilled
iii) promise of an additional payment
- iv) obtains a practical benefit/obviates disbenefit
- v) not a result of duress or fraud.