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

Fundamentals of public health law, Fundamentals of Public Health Law T...

Fundamentals of Public Health Law The Honorable Art Vandelay has been a member of the U.S. Congress for 10 years, representing the 12th District in South Caledonia. Through hi

State the international policy coordination, State the International Policy...

State the International Policy Coordination There may be two sources of interdependence between national economic policies, club goods and horizontal spill overs. The first has

Explain recognition of states pertains, Explain Recognition of States perta...

Explain Recognition of States pertains Recognition of States pertains to whether a state exists or not, meaning thereby, the participants of global community should recognize t

What are the rights and duties of an agent, Question 1 What are the rig...

Question 1 What are the rights and duties of an agent? Question 2 (a) What is the significance of the passing of property i) where the contract is an agreement to se

Convening of general meetings, Convening of General Meetings: General ...

Convening of General Meetings: General meetings are normally convened by the Board of Directors pursuant, to the relevant provision of the company's articles, such as Table A,

Characteristics of unincorporated associations, Characteristics of Unincorp...

Characteristics of Unincorporated Associations However these are associations of persons that who associate to promote a common and lawful purpose.  Thus now they have no lega

State the principle of absolute immunity, Explain the principle of absolute...

Explain the principle of absolute immunity The absolute immunity principle gradually eroded and restrictive immunity approach was followed. However, many developing countries r

Discuss the principles of the substantive law, Munsami was driving his car ...

Munsami was driving his car registration number CB 713 from Nausori to wards Suva. He was travelling at 80kmph on 50kmph zone. At koronivia a taxi driven by Ram Raji of Koronivia,

What are the fundamental rights regarding the sea, What are the fundamental...

What are the fundamental rights regarding the sea Providing states with a framework to protect their fundamental rights regarding the sea, the 1982 Convention has also set up s

Commercial Law, Silcraze City Council owns and operates a Gym. It charges $...

Silcraze City Council owns and operates a Gym. It charges $20 per month as membership fees. On the Gym Membership Card it is written that the Cardholder has the right to use all 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