| From: | Eoin O'Dell <odelle@tcd.ie> |
| To: | Obligations List <obligations@uwo.ca> |
| Date: | 29/11/2008 11:39:16 UTC |
| Subject: | RE: Consideration and Williams v Roffey |
Dear all,
I am greatly entertained and enlightened by the various directions on which
debates on this list have wandered this week, and especially so by Andrew
Robertson and David McLauchlan's replies to my speculations about consideration
in Williams v Roffey. Neither seems prepared to buy my argument that the
consideration in that case should be seen as consisting in the receipt of the
contractual performance _in the new circumstances_.
Andrew objected that I over-stated Hartley v Ponsonby and more fundamentally
that in Williams v Roffey the change in circumstances did not affect the
carpenter's obligation to perform, whilst David objected that there were
different circumstances at the time of the new agreement in Stilk v Myrick as
well.
In Stilk (http://www.bailii.org/ew/cases/EWHC/KB/1809/J58.html) Lord
llenborough said that before they had sailed from London, the sailors "had
undertaken to do all that they could under all the emergencies of the voyage.
They had sold all their services till the voyage should be completed." That
being so, the contract already provided for the eventuality which occurred;
moreover, it was still factually possible for the remaining sailors to get the
ship home. Hence, unlike David, I don't think that there were relevant new
circumstances on which to found consideration.
On the other hand, in Williams v Roffey, the contract did not provide for the
eventuality of the recessionary change in background economic circumstances,
and it was no longer factually possible for the carpenter to complete his
performance. Hence, although I agree with Andrew that the circumstances did not
affect the carpenter's obligation to perform, I think that they did affect his
ability to perform, and that, as consequence, there were indeed new
circumstances on which to found consideration.
In other words, my focus was not on the existing legal obligation (which is
common to Stilk v Myrick and Williams v Roffey) but on the ability to perform
that obligation in the changed circumstances, and where that obligation could
not be performed in the changed circumstances without the renegotiation of the
contract, there is good consideration for that renegotiated contract.
For what it's worth, I take Hartley v Ponsonby to illustrate this point: when 19
out of 36 crew deserted, it was no longer possible to sail the ship - and the
contract (re)negotiated in the new circumstances was thus supported by
consideration. By the by, I suppose it is no defence to say that, if I did
overstate Hartley, it's ok, since Denning used to do things like that too?
All the best,
Eoin.
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