C – Consideration
28/6/19
SIMANTOB v SHAVLEYAN [2019] EWCA Civ 1105
Forbearance to raise a defence later found to be without legal merit can constitute sufficient consideration to support an agreement between the parties. A variation by which the appellant agreed to accept $800,000 in full discharge of the respondent's liability under a settlement agreement was binding. The respondent gave good consideration by agreeing to give up his argument that a clause in the settlement agreement requiring payment of $1,000 per day was a penalty, even though that argument failed in later proceedings between the parties.
27/7/12
NATIONAL MERCHANT BUYING SOCIETY LTD v BELLAMY [2012] EWHC 2563 (Ch)
Good consideration can be given for a guarantee even if the parties are not conscious of it. Extrinsic evidence can also be given of consideration not expressed in the guarantee. A threat to withdraw credit facilities unless a guarantee was signed was not economic duress because the creditor had the right to withdraw the facilities so the threat was legitimate. The creditor had no duty to advise the intending guarantor to take independent advice before signing. A later request for a new guarantee had not been a repudiation of the existing guarantee. Nor did a subsequent variation in the terms of the facilities discharge the guarantor because the guarantee covered all obligations of the company, present or future and there was nothing in the surrounding circumstances to imply any limitation.