Consideration must move from the promise - law of contract, Business Law and Ethics

Assignment Help:

Consideration must move from the promise - Law of Contract

Conversely the rule that "consideration must move from the promisee" means such only a person who has personally given consideration to a promise can sue for breach to the promise.  Well a person who has not given consideration about a promise cannot sue the promisor with the simple reason such he cannot expect to get something for nothing. Hence the common law regards a contract like a bargain between the parties to a commercial transaction thus each of whom has bought the promise to the other with his own promise or like act. 

Actually this is illustrated through the case of Dunlop v Selfridge in whereas the appellants were motor tyre manufacturers and sold tyres to Messrs Dew & Co. That who were motor accessory dealers.  Hence under the terms of the contract Dew & Co. agreed not to sell the tyres below the Dunlop's list prices, and as the Dunlop's agents, to obtain from other retailers a related undertaking.  Well in return for this undertaking Dew & Co. were to obtain discounts, some of that they could pass on to retailers who bought tyres.  But Selfridge & Co. accepted two orders from customers to Dunlop covers at a lower price.  Whether they obtained the covers through Dew & Co. and signed an agreement just not to sell or offer the tyres below list price. 

Further it was further agreed that by £5 per tyre so sold should be paid to Dunlop through way of liquidated damages.  Through Selfridge's supplied one of the two tyres ordered below list price.  Though they did not actually supply the other, although informed the customer such they could only supply it at list price.  Well the appellants claimed an injunction and damages against the respondents to breach of the agreement completed with Dew & Co., claiming such Dew & Co. were their agents in the matter. Actually it was held that there was no contract made between the parties.  Thus Dunlop could not enforce the contract made between the respondents and Dew & Co. since they had not supplied the consideration.  Smooth if Dunlop were undisclosed principals, such there was no consideration moving between them and the respondents.  Moreover The discount received through Selfridge was part of that given through Dunlop to Dew & Co. since Dew & Co. were not bound to confer any part of their discount for retailers the discount received through Selfridge operated only like consideration between themselves and Dew & Co. and could not be claimed through Dunlop as consideration to support a promise not for sell below list price.


Related Discussions:- Consideration must move from the promise - law of contract

Who is liable to income tax?, QUESTION 1 Discuss the legal relationship...

QUESTION 1 Discuss the legal relationship between a bank and its customer with reference to the responsibilities of the parties towards each other QUESTION 2 (a) Examin

Employment relations act, QUESTION 1 Evaluate the circumstances under w...

QUESTION 1 Evaluate the circumstances under which an employer would be justified in terminating his worker's contract of employment under the Employment Rights Act QUESTION

Describe about a trade union, Question 1: (a) Describe about a Trade Un...

Question 1: (a) Describe about a Trade Union. (b) Show the objectives of the Trade Union in the Republic of Mauritius. Justify your answer. (c) If you were nominated as

Prospect of inflationary wage settlements, Prospect of inflationary wage se...

Prospect of inflationary wage settlements The same logic can be applied to various supply side policies. Take, for example, the prospect of inflationary wage settlements. If w

Foundations of law, Mr. D is a professional basketball player who orders so...

Mr. D is a professional basketball player who orders some shoes through the mail. The mail order house promises all customers delivery within 30 days of receiving the order. Mr. D'

List eight main objectives of tax treaties, QUESTION (a) List eight mai...

QUESTION (a) List eight main objectives of tax treaties (b) Explain carefully how cases of dual residence for both individuals and companies would be resolved by the applica

The role of expectation of winning the election, The role of expectation of...

The role of expectation of winning the election The role of expectation, of possibility of winning the election and of policy convergence on choice of agenda. In standard mode

Partnership property, Partnership Property Partnership property compri...

Partnership Property Partnership property comprises all property originally brought in the partnership as well like acquired for the purposes of such the firm's businesses. Th

Function of the court, Function of the Court: In Scottish Insurance Co...

Function of the Court: In Scottish Insurance Corporation Ltd v. Wilsons & Clyde Coal Co. Lord Simmons stated: "But important though its task is to see that the procedure by

Name based definition of phoenix activity, Q. Name based definition of phoe...

Q. Name based definition of phoenix activity? The approach taken in New Zealand has been to define phoenix activity in terms of the re-use of the name, or a name similar, to th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd