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Sender:
Look Ho
Date:
Sat, 26 May 2001 08:31:29 -0700
Re:
Total Failure

 

Members might be interested to learn that the requirement that the failure of consideration be total has still not been shaken off. In Clowes Development (UK) Ltd v Mulchinock (24 May 2001), John Martin QC sitting as a deputy judge said:

"The contract contains no express provision stipulating what is to happen to payments already made when the contract is terminated by breach. The position is accordingly governed by the general law. The most recent authorities, notably the decisions of the House of Lords in Hyundai Heavy Industries v Papadopoulos [1980] 1 WLR 1129 and Stocznia Gdanska v Latvian Shipping [1998] 1 All ER 883, indicate that such payments will be recoverable only if there has been a total failure of consideration."

 

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