Thursday, 21 October 2010

Consideration Case - Contract Law

Stilk v Myrick [1809] EWHC KB J58 has been my favourite Contract law case for a long time. It is the main case used by the UK courts to emphasise that when a person is obliged to perform a duty under a contract, any new promise (consideration) made towards him by his contractor under the same terms, (to perform exactly the same terms of the original contract) can not amount as valid.


The Case:


Stilk was contracted to work on a ship owned by Myrick for £5 a month, promising to do anything needed in the voyage regardless of emergencies. After the ship docked at Cronstadt two men deserted, and after failing to find replacements the captain promised the crew the wages of those two men divided between them if they fulfilled the duties of the missing crewmen as well as their own. After arriving at their home port the captain refused to pay the crew the money he had promised to them.


The defense, represented by Garrow, argued that the agreement between the captain and the sailors
was contrary to public policy, and utterly void. In West India voyages, crews are often thinned greatly by death and desertion; and if a promise of advanced wages were valid, exorbitant claims would be set up on all such occasions.


This ground was strongly taken by Lord Kenyon in Harris v Watson (1791), where that learned Judge held, that no action would lie at the suit of a sailor on a promise of a captain to pay him extra wages, in consideration of his doing more than the ordinary share of duty in navigating the ship; and his Lordship said, that if such a promise could be enforced, sailors would in many cases suffer a ship to sink unless the captain would accede to any extravagant demand they might think proper to make.

Stilk v Myrick [1809] EWHC KB J58 is a leading judgment from the British High Court on the subject of consideration in English contract law. In his verdict, the judge, Lord Ellenborough decided that in cases where an individual was bound to do a duty under an existing contract, that duty could not be considered valid consideration for a new contract.

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