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Revision - ConsiderationShanessa has just opened a large new live music venue. She decided that the netproceeds of the first band performance would be donated to the Student Union of thelocal university towards refurbishment of its bar.Shanessa contracted with Lesley, in charge of a small printing business, for theprinting of some posters and hand bills at a fixed price of500, the work was to becompleted no later than 14 days before the concert date.Terminator, a well known band (whose lead singer Ziggy is also a graduate of thelocal university) was invited to perform at the venue by Shanessa and they were toldabout the donation of the proceeds. In response Terminator told Shanessa that theywould play. There was no mention at all of any payment to the band.A few weeks later, but still before the date of the concert Lesley informed Shanessathat without a further150 she would not be able to complete the printing on timedue to increases in the cost of paper. Since it was too late to contract with anotherprinter Shanessa promised to pay Lesley the extra cash in return for her promise tocomplete the work on time in accordance with their contract, which she did. Justbefore the first performance Shanessa discovered that the lighting engineer Nickywas upsetting her staff by being gobby and argumentative. As a result Shanessapromised Nicky a bonus of50 to work without being so miserable. In the end, theperformance went well.Subsequently, having heard that Terminator had turned down a lucrativeengagement in order to appear, Shanessa promised to pay the band500.Shanessa has now decided not to pay Lesley and Nicky the extra amounts.Moreover, she has also decided not to pay the band Terminator.
•Issues:•Definition of consideration and rationale•Performing existing contractual duty•Past consideration•Sufficiency of considerationQuestion requires whether there is consideration given in the agreements withthe 3 parties•Consideration defined as:‘An act or forbearance of one party, or the promise thereof, is theprice for which the promise of the other is bought, and thepromise thus given for value is enforceable.’Only be the case if promises acts or promise given is in return for anexchange for the others promise and at the other parties request (eitherexpress or implied)LESLEYExisting contractual dutyGeneral rule isWhere A makes a promise to B in return for B’s promise toperform his existing contractual duty = NOT considerationStilk v Myrick – No consideration however stated in that caseIf sailors had done more than their contractual obligation that couldNOT be reasonably brought within the terms of the originalcontract then sailors could claimThis applied in Hartley v PonsonbyConfirmed and refined in Williams v Roffey BrosHeld:1.Where A has contracted to do work for or supplygoods or services to B in return for payment B AND2.Prior to A completing performance of his obligations,B has reason to doubt whether A would be able tocomplete his performance AND