Legal Issue 1: Donald v Scrooge

A. Case Facts * Scrooge engages Donald Contractors to build a pond in his garden. The contract price is $10,000 and the pond due to be completed on 1st September 2012.

* Donald deliberately underestimated the cost and quoted a very low price

* Unexpectedly, Donald’s sole employee fell sick and is unable to work for a month

The price of materials also increases dramatically

* Donald approaches Scrooge and request for an extra $5000 otherwise the pond will not be completed on time

* Scrooge reluctantly agrees as his fishes were scheduled to be delivered on 2nd September 2012 and for various reasons it cannot be postponed

Here, we will determine if the $5000 requested by Donald is a valid consideration or there is a breach of contract by Donald.

B. General Rule

1. Consideration must be sufficient

Consideration must be sufficient, defined as something having value in the eyes of the law. Where there is no benefit to the promisor or detriment to the promisee, no consideration is made.

The rule was laid in the case Thomas v Thomas (1842). The court ruled that motive should not be confused with consideration and giving the house out of gratitude is not considered sufficient consideration.

The rule later applied in White v Bluett (1853). The court held that the father (defendant) was not bound by his promise. There was no consideration for the father’s promise. The intangible benefit of feeling relieved from the persistent complaining was deemed as insufficient consideration. The son had suffered no detriment as it was his moral obligation to cease complaining.

2. Consideration must be offered from the promisor

The benefit conferred or detriment suffered by the promise must be done at the desire or request of the promisor. The act done without the request of the promisor cannot