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

Policies which reduce energy supplies, 1. Indicate whether the following st...

1. Indicate whether the following statements are true or false and briefly explain your answer. a. Actions by government to increase spending and by the central bank to increase

Determine in detail about the credibility factor, Determine in detail about...

Determine in detail about the credibility factor Let us consider, 'credibility' factor. The law, institutions and other created authorities lead to circumstances that can assur

Ethical decision making project, This activity brings together the ethical ...

This activity brings together the ethical issues, concepts, and statutes presented in your readings, lectures, and discussed in your chat sessions. You will select two (2) scenario

Obligations of the employer and the employee, Question 1: Constructive ...

Question 1: Constructive dismissal is inherently different from dismissal in the sense that it is the employee who necessarily takes the initiative in considering the contract

Explain constituent instruments, Explain Constituent instruments Consti...

Explain Constituent instruments Constituent instruments of international organizations, in which a treaty becomes a statute of an international organization, for example, Inter

State article 2 of universal declaration of human rights, State Article 2 o...

State Article 2 of Universal Declaration of Human Rights Article 2: 'Everyone is  entitled  to  the rights and freedoms set  forth in  this Declaration...' - This clause iden

Determine the implications of the legislature, Determine the implications o...

Determine the implications of the legislature Policy outcomes are the result of legislative bargaining. So policy becomes a compromise between the executive and the legislature

Approval of the scheme - mergers and winding up, Approval of the scheme - m...

Approval of the scheme - mergers and winding up: A scheme of arrangement was agreed between Hambros and Hellenic whereby the shareholders of Hellenic were to have their shares

Pooling of assets and liabilities, In 2004 the Corporations and Markets Adv...

In 2004 the Corporations and Markets Advisory Committee proposed that assets and liabilities of companies be aggregated and creditors paid from a common pool which is commonly refe

Rules of delivery of goods - sales of good, Rules of Delivery of Goods - Sa...

Rules of Delivery of Goods - Sales of Good So the rule regarding with delivery are like; (a)  The goods should be in a deliverable state and one is (b) Otherwise unless l

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