Statutory exception } Sec 27 Bills of Exchange Act 1882 'valuable consideration for a bill of exchange may be constituted by ... (b) an antecedent debt or liability' 3) Consideration must move from the promisee Only the parties to the bargain are able to enforce it. A party cannot sued/be sued under a contract unless he/she has provided consideration- except where the Contract (Rights of Third Parties) Act 1999 applies. Tweddle v Atkinson (1861) Dealt with more fully under the doctrine of 'privity' of contracts. 2 relevant areas to note: > Composition agreements with creditors >Third party payment to a creditor . Hirachand Punamchand v Temple (1911) The Contracts (Rights of Third Parties) Act 1999 could now cover these areas. Can you enforce a promise if your act or promise is only doing what you were already obliged to do? Can this amount to consideration? Need to consider 3 possible existing obligations: >Public duties imposed by law Contractual obligation to a third party Contractual obligation to the same party This will not amount to consideration } Collins v Godefroy (1831) Unless something extra is provided Glasbrook Bros v Glamorgan County Council (1925) >Sec 25(1) Police Act 1996 This will amount to consideration Shadwell v Shadwell (1860) New Zealand Shipping Co Ltd v Satterthwaite , The Eurymedon (1975) This will not amount to consideration } Stilk v Myrick (1809) Unless something extra is provided Hartley v Ponsonby (1857) Or There is a 'practical benefit' provided and no improper pressure (duress) is applied } Williams v Roffey Bros ti Nicholls (1991) Re Selectmove (1995) Does the principle of 'practical benefit' apply to a promise to accept less amount than what is owed as a debt? (note Pinnel's Case; Foakes v Beer -part payment of debts)
1 MWB Business Exchange Centres Ltd v Rock Advertising Ltd (2016) Consideration is the main test of enforceability of contracts. It means the prixce which a party pays for what he/she has gained in the contract. Some key principles apply to consideration. Performance of an existing obligation may or may not amount to consideration depending on the circumstances.