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Words: | Submitted: Mon Feb 23 2004
... Stilk v. Myrick2). However, in Williams v. Roffey Bros.3, quite unusual interpretation was expounded by the Appeal Court judges, putting thereby the classical doctrine of consideration under strain. It was held that where a party (Roffey Bros.) to an existing contract later agrees to pay an extra supplement in order to ensure that the other party (Williams) performs his duties under the contract, then that agreement is binding. If the party agreeing to pay the bonus, it has thereby obtained some new 'practical benefit' or avoided a disadvantage. In the present case there were number of evident benefits to Roffey including (a) making sure Williams continued his work, (b) avoiding payment under a damages clause of the main contract if Williams was late, and (c) avoiding the expense and trouble of getting someone else. One of the most controversial problems of such conclusion is derived from the ...
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