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Little Caesars Arena
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Little Caesars Arena
The Baddest Bowl[1]
Interior of Little Caesars Arena
Former names
Detroit Events Center (working title)[2]
Address
2645 Woodward Avenue[3]
Location
Detroit, Michigan[3]
Coordinates
42°20′28.22″N 83°3′17.68″W / 42.3411722°N 83.0549111°W / 42.3411722; -83.0549111Coordinates: 42°20′28.22″N 83°3′17.68″W / 42.3411722°N 83.0549111°W / 42.3411722; -83.0549111
Public transit
Sproat Street/Adelaide Street[4]
Owner
Downtown Development Authority[5]
Operator
Olympia Entertainment[6]
313 Presents[7]
Executive suites
60[8]
Capacity
Ice hockey: 19,515[9]
Basketball: 20,491[10]
Concerts: 15,000–22,000[2]
Construction
Broke ground
September 25, 2014[11]
Opened
September 5, 2017[17]
Construction cost
US$862.9 million[12]
Architect
HOK[13]
Structural engineer
Magnusson Klemencic Associates[14]
Services engineer
Smith Seckman Reid, Inc.[15]
General contractor
Barton Malow/Hunt/White[16]
Tenants
Detroit Red Wings (NHL) (2017–present)
Detroit Pistons (NBA) (2017–present)
Little Caesars Arena is a multi-purpose arena in Midtown Detroit. Construction began on April 24, 2015 following a formal groundbreaking ceremony on September 25, 2014. Opened on September 5, 2017, the arena, which cost $862.9 million to construct, succeeded both Joe Louis Arena and The Palace of Auburn Hills as the homes of the Detroit Red Wings of the National Hockey League (NHL) and the Detroit Pistons of the National Basketball Association (NBA), respectively.
The arena features a unique, glass-roofed concourse connecting it to offices and shops surrounding it. It anchors a new $2.1 billion 650,000-square-foot (60,000 m2) sports and entertainment district in and around downtown Detroit that will include mixed-use neighborhoods with new residential and retail outlets located around the Cass Corridor, Ford Field and Comerica Park.
Contents
[hide]
1 Design
2 History
2.1 Rumors and announcement
2.2 Construction
2.3 Pistons' move
2.4 Budget
3 Naming rights
4 Events
4.1 Ice hockey
4.2 Basketball
4.3 Combat sports
4.4 Figure skating
4.5 Professional wrestling
4.6 Concerts
5 Early attendance issues
6 References
7 External links
Design[edit]
Little Caesars Arena was designed by HOK, and features a unique "deconstructed" layout. Buildings housing retail outlets, the arena's box office, and the offices of the Red Wings are built outside the arena, but a glass roof is erected between the buildings and the arena itself. The roof forms an indoor "street" that serves as the arena's concourse.[16] The concourse will remain open year-round, even if an event is not occurring inside the arena, allowing it to also be used as a venue of its own.[16] There is also an outdoor plaza with a large video display.[18]
The eight-story arena is built as a bowl, with its floor 40 feet (12 m) below street level with seating capacities of 19,515 for ice hockey and 20,491 for basketball.[9][10][19] The bowl also features a "gondola" seating level suspended above the stands.[18] The exterior of the bowl structure is capable of displaying video projections.[18] A 37,300-square-foot (3,470 m2) practice ice rink is also inside the arena. In addition to serving as the practice facility for the Red Wings, the rink serves as the home of both Little Caesars AAA Hockey Club and Little Caesars Amateur Hockey League as well.[20][21]
The Bell Centre in Montreal has been cited to be one of the biggest influences of the arena's design.[22][23] Christopher Ilitch described the arena's design as being "revolutionary", and believes that it may influence future arena designs in other cities.[16][24]
The arena features a centerhung scoreboard that measures at 5,100 square feet. The arena also features 45 LED displays covering more than 13,500 square feet and 16.5 million plus LEDs in and around it.[25]
History[edit]
Rumors and announcement[edit]
Comerica Park and Ford Field (pictured) were incorporated into a "Wildcat Corner" district near the new arena
It was reported in May 2012 that the Red Wings had hired HKS, Inc. and NBBJ to design a new arena for the team, which would replace the 33-year-old Joe Louis Arena as their home ice.[26] The new arena would be owned by the city's Downtown Development Authority and its land would be leased to Olympia Entertainment, a subsidiary of the Red Wings' parent company, Ilitch Holdings, rent free for a long term. Olympia would have full operational control of the arena, an arrangement similar to the one Olympia had with the city-owned Joe Louis Arena.[5][27] Sales of game tickets, parking, concessions, souvenirs, and any potential naming rights deals would not be subject to revenue sharing with the City of Detroit as they are with Joe Louis Arena. The city earned an average of $7 million per year through these revenue sharing agreements.[28]
Olympia Entertainment officially announced in December 2012 its intention to develop a new district in downtown Detroit composed of offices, residential facilities, and "a new state-of-the-art, multi-purpose events center", with an estimated cost of $650 million.[29] In June 2013, the Downtown Development Authority officially announced the location of the new Detroit Red Wings arena and entertainment district.[30] On July 24, 2013, the Michigan Strategic Fund approved the Downtown Development Authority's request for $650 million in funding.[31]
Christopher Ilitch unveiled renderings of the new arena and entertainment district on July 20, 2014, referring to it as "The District Detroit".[16] He explained that the project's goal was to "build out a sports and entertainment district that is world-class and rivals anything in the country, perhaps the world." The district, which would complement the QLINE streetcar, was primarily built on vacant land near the Cass Corridor along Woodward Avenue, and would incorporate five distinct neighborhoods with new residential and apartment units and European-influenced designs. The district would also feature a hotel, new restaurants, and new retail outlets. Olympia Development would fund the refurbishment of public infrastructure around the arena district, such as street lighting, sidewalks, and paving.[24] One of the neighborhoods, referred to by Ilitch as "Wildcat Corner", would incorporate the area occupied by the Tigers and Lions' home venues of Comerica Park and Ford Field, respectively, and replace several parking lots with new apartment complexes featuring street-level retail outlets.[16]
Ilitch emphasized the impact of the arena district project would have on Detroit's economy: the new facilities would result in 1,000 new jobs in the city, and 8,300 new jobs would be created for the construction process. Olympia was committed to having 51% of the construction jobs be filled by residents of Detroit. Additionally, two Michigan-based contractors would be among those working on the arena, and 80% of the materials used in the construction of the arena was also to be sourced from Michigan-based companies when possible.[24]
Olympia Entertainment CEO Tom Wilson described an intent for the arena to be an "epicenter" for hockey, prospecting it as a site for events and tournaments at the college and junior levels such as the IIHF World Junior Championship and the Memorial Cup.[32] Wilson also stated its commitment to continue hosting the annual collegiate Great Lakes Invitational at the arena, provided the universities involved maintained their desire to participate.[33]
Construction[edit]
Construction in progress in June 2016
A formal groundbreaking ceremony was held at the arena site on September 25, 2014.[11] Following the completion of the new arena, Joe Louis Arena will be demolished, and its former site will be redeveloped into a hotel and retail complex. The sale of the Joe Louis Arena site comes as part of a bankruptcy settlement between the Financial Guaranty Insurance Company and the city of Detroit.[16][34]
Mass excavation at the arena site began on April 24, 2015, a few days after Detroit City Council approved a zoning change, allowing vertical construction to officially commence.[35][36][37]
The Detroit Historic District Commission approved the demolition of the Park Avenue Hotel on June 10, 2015 to make room for what will be the arena's loading dock.[38] Olympia Development claimed that the Park Avenue Hotel stood in a high-security area.[39] A demolition permit was issued on June 22, 2015. Detroit-based Adamo Demolition was the contractor listed on the permit.[40] Despite protests, the building was imploded on July 11, 2015.[41][42][43][44] On August 30, 2015, Olympia Entertainment announced that an estimated 488,000 cubic yards of soil had been excavated in recent months for the below-grade bowl, and hundreds of deep pier foundations were being drilled and filled with concrete through September. The steel frame of the arena began to go up in late fall.[45]
Construction of the ice surface began on January 5, 2017.[46] On February 16, 2017, various construction changes began inside the arena in order to accommodate the Detroit Pistons.[47] Construction of the ice rink began on March 8, 2017.[48]
Little Caesars Arena opened on September 5, 2017 with a ribbon cutting ceremony.[17]
Pistons' move[edit]
In late October 2016, it was reported that the Detroit Pistons were considering a move from The Palace of Auburn Hills to Little Caesars Arena as soon as the 2017–18 season, pending city and league approval.[49][50] Pistons owner Tom Gores, Palace Sports & Entertainment vice chairman Arn Tellem, and Olympia Entertainment had been in negotiations over a partnership since the summer of 2015, with talks intensifying just as the Pistons were set to open their 2016–17 season; the terms may also include a possible merger between Olympia and the Pistons' holding company Palace Sports & Entertainment.[51] The team also sought land to construct a new headquarters and practice facility within the vicinity of the arena.[51]
On November 22, 2016, it was officially announced that the Pistons would move to Little Caesars Arena starting with the 2017–18 season.[52][53][54]
On June 20, 2017, Detroit City Council approved the Pistons' move to Little Caesars Arena.[55] On August 3, 2017, it was announced that the NBA Board of Governors unanimously approved the move, which made it official.[56][57] This marked the first time since 1974 that all four major sports teams played in the city limits on a regular basis, and the first time since 1978 that the Pistons played in the city of Detroit on a regular basis.[58][59][60] The move also marked the first time since 1961 that they and the Red Wings shared the same arena; the Pistons called the Detroit Olympia home from 1957 to 1961.[61]
On October 8, 2017, as a byproduct of the move, entertainment bookings and event management at the venues owned by both companies, including Little Caesars Arena, were assumed by 313 Presents LLC, a joint venture between Olympia and Palace Sports & Entertainment.[7][62][63]
Budget[edit]
It was originally announced that Little Caesars Arena would cost $450 million to construct, on top of an additional $200 million for constructing the new district. $285 million of the total $650 million cost would be public funds, with $365.5 million in private funding.[30][64]
On May 23, 2017, it was revealed that the cost of the new arena had risen to $862.9 million.[12]
In June 2017, a lawsuit was filed by Robert Davis and city clerk candidate D. Etta Wilcoxon, seeking to prohibit the use of school property tax revenue to fund Little Caesars Arena and the new Detroit Pistons headquarters without a public vote. The money had originally been approved by voters only for use by Detroit Public Schools Community District to cover operational expenses.[65] District Judge Mark A. Goldsmith dismissed much of the suit, ruling that the plaintiffs lacked standing to sue over the issue. The judge did, however, allow an unrelated count, alleging violations of the Equal Protection Clause by the DPSCD against Davis, to move forward.[66]
Naming rights[edit]
On February 11, 2016, it was reported that a local businessman had sold the domain name "littlecaesarsarena.com" three weeks earlier to an international brokerage firm for "five figures", which suggested that Little Caesars, a pizza chain also owned by the Ilitch family, had acquired the naming rights to the new arena.[67] Olympia Entertainment officially announced on April 28, 2016 that the venue would be known as Little Caesars Arena. It was also revealed that a large Little Caesars logo would be displayed on the arena's roof; the previous plan for the LED roof was dismissed as being a "placeholder".[68][69][70][71] Chris Ilitch defended the decision of not selling the naming rights to a third-party company, arguing that it was meant to reflect Little Caesars' position as a "legacy business" of the Ilitch family.[72]
The announcement was poorly-received.[73] Prior to the unveiling of the official name, some fans suggested to The Detroit News that the arena should have been named after Gordie Howe.[74] Following Howe's death on June 10, 2016, an online petition began to circulate requesting that Little Caesars Arena be renamed in honor of the former Red Wings player.[75][76]
A number of nicknames have emerged for the venue, including "The Pizzarena", "The Pizza Box", "The Pizza Palace", "The Oven", and "The DoughJoe".[77][78]
Events[edit]
Ice hockey[edit]
The Red Wings played their inaugural game at Little Caesars Arena during the preseason against the Boston Bruins on September 23, 2017. They won the game 5–1.[79] They played their first regular season game at the arena on October 5, 2017 against the Minnesota Wild. They won the game 4–2.[80]
In February 2017, NHL Commissioner Gary Bettman stated that the NHL All-Star Game would likely return to Detroit for the first time since 1980 once construction of The District Detroit is completed.[81]
The 2020 NCAA Men's Frozen Four will be held at Little Caesars Arena, hosted by Michigan State University.[82]
Basketball[edit]
The Pistons played their inaugural game at Little Caesars Arena during the preseason against the Charlotte Hornets on October 4, 2017. They lost the game 108–106.[83] Their regular season home opener, also against the Hornets, was played on October 18, 2017. The Pistons beat the Hornets 102–90.[84]
The first regular season college basketball games held at Little Caesars Arena were played on December 16, 2017, with a doubleheader featuring the Michigan Wolverines playing the Detroit Mercy Titans, and the Michigan State Spartans playing the Oakland Golden Grizzlies.[85][86]
Little Caesars Arena will host the Horizon League's men's and women's basketball tournaments beginning in 2018. Detroit began hosting the men's tournament at Joe Louis Arena in 2016 under a 5-year deal, and the women's tournament in 2017.[87][88]
First and second-round games during the 2018 and 2021 NCAA Division I Men's Basketball Tournaments will be played at Little Caesars Arena, hosted by the University of Detroit Mercy.[89][90][82] Although the nearby Palace of Auburn Hills hosted preliminary rounds of the Tournament in 2013, this will be the Tournament's first visit to Detroit since the city hosted the 2009 Final Four at Ford Field.[91][92]
Combat sports[edit]
Little Caesars Arena hosted UFC 218 on December 2, 2017.[93][94]
The 2022 NCAA Division I Wrestling Championships will be held at the arena, hosted by the University of Michigan.[82]
Figure skating[edit]
Little Caesars Arena will host the 2019 U.S. Figure Skating Championships.[95]
Professional wrestling[edit]
Little Caesars Arena hosted the WWE pay-per-view Hell in a Cell on October 8, 2017.[96][97]
Concerts[edit]
See also: List of entertainment events at the Little Caesars Arena
Early attendance issues[edit]
Since the opening of Little Caesars Arena, there have been some questions concerning attendance at both Red Wings and Pistons games. During the Red Wings' first regular season game at the arena, the sight of a half empty lower bowl was noticeable due to it being nationally televised.[77] When asked about this, Olympia CEO Tom Wilson explained that many fans went to the concourse to check out the arena, noting that the same thing happened during the first event.[98] In early November 2017, the team announced that all of the home games played at that point were sellouts despite the sight of empty seats.[9] Like the Red Wings, the Pistons have had similar issues. When asked about it, they stated that ticket sales were up despite the empty seats.[99][9][100]
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Jump up ^ Thomas, Christopher D (July 30, 2017). "Little Caesars Arena to host UFC 218 in December". Detroit Free Press. Retrieved July 30, 2017.
Jump up ^ Bianchi, Nolan (December 3, 2017). "Holloway KO's Aldo in round 3 of UFC 218". The Detroit News. Retrieved December 3, 2017.
Jump up ^ Krupa, Gregg (November 9, 2017). "Detroit to host 2019 U.S. Figure Skating Championships". The Detroit News. Retrieved November 9, 2017.
Jump up ^ "Little Caesars Arena to host WWE Hell in a Cell PPV event on October 8". WXYZ.com. Scripps Media. July 29, 2017. Retrieved July 30, 2017.
Jump up ^ Graham, Adam (October 9, 2017). "Shane McMahon goes flying at Hell in a Cell". The Detroit News. Retrieved October 23, 2017.
Jump up ^ Paul, Tony (October 6, 2017). "Red Wings explain all the empty seats for LCA opener". The Detroit News. Retrieved October 6, 2017.
Jump up ^ Ellis, Vince (October 26, 2017). "Pistons say attendance up despite empty Little Caesars Arena seats". Detroit Free Press. Retrieved November 9, 2017.
Jump up ^ Lyall, Sarah (November 9, 2017). "At the Pistons' New Home, Empty Seats and Hockey Statues". The New York Times. Retrieved November 9, 2017.
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Consideration in English law
From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about consideration under English law. For an American focused article, see Consideration in American law.
Consideration in English law is one of the four main building blocks of a contract. Consideration can be anything of value (such as an item or service), which each party to a legally binding contract must agree to exchange if the contract is to be valid. If only one party offers consideration, the agreement is not legally a binding contract. In its traditional form, expressed as the requirement that in order for parties to be able to enforce a promise, they must have given something for it (quid pro quo): something must be given or promised in exchange or return for the promise. A contract must be "met with" or "supported by" consideration to be enforceable; also, only a person who has provided consideration can enforce a contract. In other words, if an arrangement consists of a promise which is not supported by consideration, then the arrangement is not a legally enforceable contract. Mutual promises constitute consideration for each other. ("I promise you that I will do X, in consideration for which you promise me that you will do Y").
Contents
[hide]
1 Value
2 Adequacy
3 Past conduct
4 Illusory consideration
4.1 Forbearing to sue
5 Privity
6 Pre-existing duties
6.1 Factual benefits
6.2 Existing duties to third parties
7 Estoppel
8 Deeds and formality
9 Alternatives
10 See also
11 References
12 Further reading
13 External links
Value[edit]
Consideration for a particular promise exists where some right, interest, profit or benefit accrues (or will accrue) to the promisor as a direct result of some forbearance, detriment, loss or responsibility that has been given, suffered or undertaken by the promisee. The consideration must be executory or executed, but not past.
Consideration is executory when a promise to do something in the future is given in exchange for another promise to be done in the future. Consideration is executed when a promise is actually executed, in exchange for another promise to be executed in the future. Consideration is past when a promise has been given or executed before and independently of the other promise. For example, I promised to take you to lunch, and then when we got there I said "you must pay, because I have given you the benefit of my company". This is past consideration and therefore NO consideration.
In its traditional form, consideration is expressed as the requirement that in order for parties to be able to enforce a promise, they must have given something for it (quid pro quo): something must be given or promised in exchange or return for the promise. A contract must be "met with" or "supported by" consideration to be enforceable; also, only a person who has provided consideration can enforce a contract. In other words, if an arrangement consists of a promise which is not supported by consideration, then the arrangement is not a legally enforceable contract. Mutual promises constitute consideration for each other. ("I promise you to do X, in consideration for which you promise me to do Y").

ex nudo pacto actio non oritur
Dyer's case (1414) 2 Hen. 5, 5 Pl. 26
Lucy v Walwyn was an early case on the doctrine of consideration, concerning an executory contract where the plaintiff recovered damages for the loss of a bargain.[1]
Thomas v Thomas.[2] was a case where £1 was seen to be good consideration for a widow to continue to live in her house after her husband's death.
White v Bluett: Bluett, when sued by his father’s executors for an outstanding debt to his father, claimed that his father had promised to discharge him from it in return for him stopping complaining about property distribution. The Court held that the cessation of complaints was of no economic value; thus, Bluett’s father had received no real consideration for the promise, and the debt was enforceable at law.[3]
Currie v Misa Lush J. referred to consideration as consisting of a detriment to the promisee or a benefit to the promisor: "... some right, interest, profit or benefit accruing to one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other."[4]
Bolton v Madden Blackburn J, "The general rule is that an executory agreement, by which the plaintiff agrees to do something on the terms that the defendant agrees to do something else, may be enforced if what the plaintiff has agreed to do is either for the benefit of the defendant or to the trouble or prejudice of the plaintiff."[5]
Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd Lord Dunedin, "An act or forbearance of one party, or the promise thereof, is the price for which the promise of the other is bought and the promise thus given for value is enforceable."[6]
Adequacy[edit]
For consideration to be good consideration, it must be of some value, even if it is minimal value. There is no requirement that the consideration be commensurate in economic terms to the original promise. Nominal consideration will suffice as good consideration for a contract, Courts will not measure the adequacy of the consideration as it is up to the parties to decide the subjective worth of each promise.
Chappell & Co Ltd v Nestle Co Ltd, Lord Somervell, "A contracting party can stipulate for what consideration he chooses. A peppercorn does not cease to be good consideration if it is established that the promisor does not like pepper and will throw away the corn."[7]
Past conduct[edit]
A promise cannot be based upon consideration that was said, given or done before the promise was performed. Something said afterwards, will not count as consideration. For example, if X promises to reward Y for an act that Y had already performed then while the performance of that act is good consideration, for the promise to be rewarded for it is past consideration and therefore not good consideration.
In Eastwood v Kenyon the guardian of a young girl raised a loan to educate the girl and to improve her marriage prospects. After her marriage, her husband promised to pay off the loan. It was held that the guardian could not enforce the promise as taking out the loan to raise and educate the girl was past consideration, because it was completed before the husband promised to repay it.[8]
Furthermore, where a contract exists between two parties and one party, subsequent to formation, promises to confer an additional benefit on the other party to the contract, that promise is not binding because the promisee's consideration, which is his entry into the original contract, had already been completed (or "used") at the time the next promise is made.
In Roscorla v Thomas, Roscorla had contracted to buy a horse from Thomas for £30. After the sale, Thomas promised Roscorla that the horse was sound; the horse turned out to be vicious. It was held that Roscorla could not enforce the promise, as the consideration given for entering into the contract to buy the horse had been completed by the time the promise was made; in a sense, the consideration was "used up".[9]
The rule that past consideration is not good consideration is subject to the exception discussed by the Privy Council in Pao On v Lau Yiu Long.[10] In that case, their Lordships held that past consideration can be good consideration where:
The promisee performed the original act at the request of the promisor;
It was clearly understood or implied between the parties that the promisee would be rewarded for the performance of the act;
The actual promise made, if made before the promisee provided the consideration, must be capable of being enforced, in other words giving rise to a legally binding contract.
Illusory consideration[edit]
There must be some kind of connection between a promise and the consideration offered to support the promise. It is no consideration to "refrain from a course of conduct which it was never intended to pursue".[11] The consideration must have been at least an inducement to enter into the promise.
Forbearing to sue[edit]
Callisher v Bischoffsheim, forbearance to sue in a groundless action still good consideration; honest mistake.[12]
Privity[edit]
See also: Privity in English law
A promise is enforceable if it is supported by consideration, that is, where consideration has moved from the promisee. For example, in the case of Tweddle v Atkinson,[13] John Tweddle promised William Guy that he would pay a sum of money to the child of William Guy, and likewise William Guy promised John Tweddle that he would pay a sum of money to the child of John Tweddle, upon the marriage of the two children to each other. However, William Guy failed to pay the son of John Tweddle, who then sued his executors for the amount promised. It was held that the son could not enforce the promise made to his father, as he himself had not actually given consideration for it - it was his father who had done so instead. The son didn't receive any consideration, so he cannot enforce the promise. This particular rule of consideration forms the basis of the doctrine of privity of a contract, that is, only a party to a contract is permitted to sue upon that contract's terms. (Note that the doctrine of privity has been somewhat altered by the Contracts (Rights of Third Parties) Act 1999.) Therefore, consideration from the promisee was indulgent of the claim. Although consideration must move from the promisee, it does not necessarily have to move to the promisor. The promisee may provide consideration to a third party, if this is agreed at the time the parties contracted.[5]
The offeree must provide consideration, although the consideration does not have to flow to the offeror. For example, it is good consideration for person A to pay person C in return for services rendered by person B. If there are joint promisees, then consideration need only to move from one of the promisees.
Pre-existing duties[edit]
If the promisee provides what he was required by public law to do in any event in return for a promise, promised performance of existing duty is not good consideration. In Collins v Godefrey Godefrey promised to pay Collins for his giving of evidence. It was held that Collins could not enforce the promise as he was under a statutory duty to give evidence in any event.[14]
However, if the promisee provides more than what public duty imposes on him, then this is good consideration. In Ward v Byham a mother was under a statutory duty to look after her child. The ex-husband promised to pay her £1 a week if she ensured that the child was well looked after and happy. It was held that notwithstanding the statutory duty imposed on the mother, she could enforce the promise since the act of keeping the baby 'happy' provided additional consideration.[15]
Promising to perform a pre-existing duty owed to one's contracting party also fails to make good consideration.[16] However this rule has been considerably narrowed by recent case law. The general rule is that if a creditor promises to discharge a debt in return for a fraction of payment, in paying the agreed fraction, the promisee is not providing consideration for the promise, as this is merely part performance of a contractual duty already owed.[17][18] Consequently, the debtor is still liable for the whole amount, as he cannot force the promisor to accept less. A leading example is in Stilk v Myrick where Stilk, a seaman, agreed with Myrick to sail his boat to the Baltic Sea and back for £5 per month. During the voyage, two men deserted. Myrick promised he would increase Stilk's wages if Stilk agreed to honour his contract in light of the desertions. Stilk agreed and on return to port, Myrick refused to pay him the extra wages. It was held that Myrick's fresh promise was not enforceable as the consideration Stilk had provided for it, the performance of a duty he already owed to Myrick under contract, was not good consideration for Myrick's promise to increase his wages.[19]
Initially, there were only two exceptions to this rule:
Hanson v Royden, the promisee has done, or has promised to do, more than he was obliged to do under his contract.[20]
Hartley v Ponsonby before the fresh promise was made, circumstances had arisen which would have entitled the promisee to refuse to carry out his obligations under his contract.[21]
Factual benefits[edit]
However, the strictness of this rule was severely limited in Williams v Roffey Bros & Nicholls (Contractors) Ltd.[22] The Roffey Brothers entered into a contract to refurbish a block of flats for a fixed price of £20,000. They sub-contracted carpentry work to Williams. It became apparent that Williams was threatened by financial difficulties and would not be able to complete his work on time. This would have breached a term in the main contract, incurring a penalty. Roffey Brothers offered to pay Williams an additional £575 for each flat completed. Williams continued to work on this basis, but soon it became apparent that Roffey Brothers were not going to pay the additional money. He ceased work and sued Roffey Brothers for the extra money, for the eight flats he had completed after the promise of additional payment. The Court of Appeal held that Roffey Brothers must pay Williams the extra money, as they had enjoyed practical benefits from the promise they had made to Williams. The benefits they received from it include: Having the work completed on time, not having to spend money and time seeking another carpenter and not having to pay the penalty. In the circumstances, these benefits were sufficient to provide consideration for the promise made to Williams of additional payment. It now seems that the performance of an existing duty may constitute consideration for a new promise, in the circumstances where no duress or fraud are found and where the practical benefits are to the promisor. The performance of an existing contractual duty owed to the promisor is not good consideration for a fresh promise given by the promisor. However, performance of an existing contractual duty owed to a third party can be good consideration, see further below.
According to the Court of Appeal, it is unlikely that either avoiding a breach of contract with a third party, avoiding the trouble and expense of engaging a third party to carry out work or avoiding a penalty clause in a third party contract will be a "practical benefit". In Simon Container Machinery Ltd v Emba Machinery AB, the practical benefit was held to be the avoiding of a breach of contract, which was clearly not an extension of the principle.[23]
This is true unless the debtor provided fresh consideration for the promise. The following, mentioned in Pinnel's Case,[17] and confirmed by Sibree v. Tripp,[24] may amount to fresh consideration:
If the promisee offers part payment earlier than full payment was due, and this is of benefit to the creditor;
If the promisee offers part payment at a different place than where full payment was due, and this is of benefit to the creditor; or,
If the promisee pays the debt in part by another chattel (note, however, that part payment by cheque, where full payment was due by another means, is not consideration.[25])
Another exception is that part payment of the debt by a third party as consideration for a promise to discharge the creditor from the full sum, prevents the creditor then suing the debtor for full payment (see Welby v Drake).
The Court of Appeal, in Re Selectmove Ltd,[26] stated that the practical benefit doctrine, arising from Williams v Roffey,[22] cannot be used as an additional exception to the rule. In that case, it was held that the doctrine only applies where the original promise was a promise to pay extra and not to pay less. It should be noted, however, that the Court of Appeal in Re Selectmove[26] were unable to distinguish Foakes v Beer (a House of Lords decision),[18] in order to apply Williams v Roffey (a Court of Appeal decision).[22] It therefore remains to be seen whether the House of Lords would decide this point differently. In any event, the equitable principle of promissory estoppel may provide the debtor with relief.[27]
The Court of Appeal in June 2016 in MWB v Rock Advertising revisited the issue of whether the practical benefit doctrine could be applied to decreasing pacts or agreements to accept less. Arden LJ and Kitchin LJ both endorsed this approach indicating that part payment along with practical benefit could be enough to support a promise to accept less. The decision has been criticised as extending the practical benefit test beyond its limits.[28]
Existing duties to third parties[edit]
Consideration for a promise can be the performance of a contractual duty owed to someone other than the promisor. In Shadwell v Shadwell, Cayley Shadwell was under a contractual duty with a third party to marry. His uncle, Charles Shadwell promised to pay him £150 per year after he was married. It was held that Cayley Shadwell marrying was good consideration, notwithstanding that he was obliged by a contract with a third party to marry in any event.[29]
A promise to perform a pre-existing contractual duty owed to a third party (as opposed to the performance of that duty) may also amount to consideration.[10]
NZ Shipping Co Ltd v A M Satterthwaite & Co Ltd.[30]
Estoppel[edit]
Main article: Estoppel (English law)
Central London Property Trust Ltd v High Trees House Ltd.[31]
Hughes v Metropolitan Rly Co.[32]
D & C Builders v Rees.[25]
Ogilvy v Hope Davies.[33]
Combe v Combe.[34]
Re Selectmove Ltd.[26]
Collier v P&MJ Wright (Holdings) Ltd.[35]
Waltons Stores (Interstate Ltd) v Maher.[36]
Crabb v Arun District Council.[37]
Avon County Council v Howlett a person can be estopped from denying what he said in a representation.[38]
Deeds and formality[edit]
Law of Property (Miscellaneous Provisions) Act 1989 (UK) section 1
Alternatives[edit]
See also: Principles of European Contract Law and UNIDROIT Principles
Carlill v Carbolic Smoke Ball Co AL Smith LJ, I understand that if there is no consideration for a promise, it may be a promise in honour, or a nudum pactum; but if anything else is meant, I do not understand it. I do not understand what a bargain or a promise or an agreement in honour is unless it is one on which an action cannot be brought because it is nudum pactum. In my judgment, this first point fails, and this was an offer intended to be acted upon, and, when acted upon and the conditions performed, constituted a promise to pay.[39]
Antons Trawling Co Ltd v Smith, Baragwanath J, "The importance of consideration is as a valuable signal that the parties intend to be bound by their agreement, rather than an end in itself. Where the parties who have already made such intention clear by entering legal relations have acted upon an agreement to a variation, in the absence of policy reasons to the contrary, they should be bound by their agreement."[40][41]
UNIDROIT Principles (2004) Article 2.1.2 and 3.2
See also[edit]
English contract law
References[edit]
Jump up ^ Lucy v Walwyn (1561) KB 27/1026, m. 76; 94 Seldon Soc. 268.
Jump up ^ Thomas v Thomas [1842] EngR 260; (1842) 2 QB 851.
Jump up ^ White v Bluett (1853) 23 LJ Ex 36.
Jump up ^ Currie v Misa (1875) LR 10 Ex 153 at p. 162 ;(1875-76) LR 1 App Cas 554.
^ Jump up to: a b Bolton v Madden (1873) LR 9 QB 55 at p. 56.
Jump up ^ Dunlop Pneumatic Tyre Co Ltd v Selfridge & Co Ltd [1915] UKHL 1 at p. 855, [1915] AC 847.
Jump up ^ Chappell & Co Ltd v Nestle Co Ltd [1959] UKHL 1, [1960] AC 87.
Jump up ^ Eastwood v Kenyon [1840] EngR 90, [1840] 11 Ad & E 438, 113 Eng Rep 482.
Jump up ^ Roscorla v Thomas [1842] EWHC J74, (1842) 3 QB 234.
^ Jump up to: a b Pao On v Lau Yiu Long [1979] UKPC 17, [1980] AC 614.
Jump up ^ Arrale v Costain Civil Engineering Ltd [1976] 1 Lloyd's Rep 98.
Jump up ^ Callisher v Bischoffsheim (1870) LR 5 QB 449.
Jump up ^ Tweddle v Atkinson [1861] EWHC J57, (1861) 1 B&S 393; 121 ER 762.
Jump up ^ Collins v Godefroy [1831] EWHC J18, (1831) 1B & Ad 951; 109 ER 1040.
Jump up ^ Ward v Byham [1956] EWCA 1, [1956] 1 WLR 496.
Jump up ^ Glasbrook Ltd v Glamorgan County Council [1924] UKHL 3, [1925] AC 270.
^ Jump up to: a b Pinnel's Case (1602) 77 ER 237; [1602] 5 Co. Rep. 117a.
^ Jump up to: a b Pinnel's Case was confirmed by Foakes v Beer [1884] UKHL 1, (1884) 9 App Cas 605.
Jump up ^ Stilk v Myrick [1809] EWHC J58, (1809) 2 Camp 317; 170 ER 851.
Jump up ^ Hanson v Royden (1867) LR 3 CP 47.
Jump up ^ Hartley v Ponsonby [1857] EngR 605; 119 ER 1471; (1857) 7 E & B 872.
^ Jump up to: a b c Williams v Roffey Bros & Nicholls (Contractors) Ltd [1989] EWCA 5, [1991] 1 QB 1; [1990] 1 All ER 512.
Jump up ^ Simon Container Machinery Ltd v Emba Machinery Ltd [1998] 2 Lloyds Rep 428.
Jump up ^ Sibree v Tripp [1846] EngR 269; 153 ER 745; (1846) 15 M & W 23; 15 LJEx 318
^ Jump up to: a b D & C Builders Ltd v Rees [1965] EWCA 3, [1965] 2 QB 617, [1966] 2 WLR 288.
^ Jump up to: a b c Re Selectmove Ltd [1993] EWCA 8, [1995] 1 WLR 474.
Jump up ^ Atlas Express Ltd v Kafco (Importers & Distributors) Ltd [1989] QB 833.
Jump up ^ "MWB Business Exchange Centres Ltd v Rock Advertising Ltd". My Law Tutors. 2017-03-18. Retrieved 2017-03-20.
Jump up ^ Shadwell v Shadwell [1860] EWCA J88, 142 ER 62; confirmed by The Eurymedon [1938] 1 All ER 122;(1935-1938) 1 Res Judicatae 339.
Jump up ^ NZ Shipping Co Ltd v A M Satterthwaite & Co Ltd [1974] UKPC 1, [1975] AC 154; [1974] 1 All ER 1015.
Jump up ^ Central London Property Trust Ltd v High Trees House Ltd [1946] EWHC 1, [1947] KB 130.
Jump up ^ Hughes v Metropolitan Rly Co [1877] UKHL 1, (1877) 2 App Cas 439
Jump up ^ Ogilvy v Hope Davies [1976] 1 All ER 683
Jump up ^ Combe v Combe [1952] EWCA 7, [1951] 2 KB 215.
Jump up ^ Collier v P&MJ Wright (Holdings) Ltd [2007] EWCA 1329.
Jump up ^ Waltons Stores (Interstate Ltd) v Maher [1988] HCA 7, (1988) 164 CLR 387.
Jump up ^ Crabb v Arun District Council [1975] EWCA 7, [1976] 1 Ch 170.
Jump up ^ Avon County Council v Howlett [1983] 1 All ER 1073; [1983] 1 WLR 603.
Jump up ^ Carlill v Carbolic Smoke Ball Company [1892] EWCA 1, [1893] 1 QB 256
Jump up ^ Antons Trawling Co Ltd v Smith [2002] NZCA 331, [2003] 2 NZLR 23.
Jump up ^ Scott, Karen N. "From Sailors to Fisherman: Contractual Variation and the Abolition of the Pre-Existing Duty Rule in New Zealand". (2005) 11 Canterbury Law Review 201.
Further reading[edit]
Baker, JH (1986). "Origins of the Doctrine of Consideration 1535-1585". In Baker, JH. The Legal Profession and the Common Law: Historical Essays. London: Hambledon Press. ISBN 0907628621.
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