Facts
- Roscorla purchased a horse from Thomas; the sale constituted the initial transaction between the parties.
- After the sale was concluded, Thomas assured Roscorla that the horse was sound, free from vice, and of good quality.
- The horse was later discovered to have a vicious temperament, contrary to Thomas’s assurance.
- Roscorla brought a claim for breach of contract based on the post-sale statement about the horse’s condition.
- The central question was whether Thomas’s assurance, made after the sale, formed a binding contractual warranty supported by valid consideration.
Issues
- Whether a promise made after the completion of a contractual transaction (the sale of the horse) is enforceable.
- Whether the purchaser’s prior act of buying the horse constitutes valid consideration for the seller’s subsequent warranty regarding the horse’s quality.
Decision
- The Court of Queen’s Bench held that the only consideration provided by Roscorla, the purchase of the horse, was completed before the subsequent promise was made.
- The court ruled that past consideration, such as an act completed prior to a later promise, cannot support that promise.
- The warranty given after the sale was not supported by new or contemporaneous consideration and was therefore unenforceable.
- The only promise implied by the original sale was the transfer of ownership, not the subsequent assurance of quality.
Legal Principles
- In contract law, consideration must be given in exchange for a promise; past acts or benefits do not qualify as good consideration for a subsequent promise.
- A promise made after a completed transaction, without new consideration, is deemed gratuitous and unenforceable.
- The general rule from this case is subject to limited exceptions, such as where the prior act was performed at the request of the promisor and a later promise was understood at the outset to be forthcoming, as established in cases like Lampleigh v Brathwait (1615).
- The decision in Roscorla v Thomas maintains that consideration and a legal promise must be concurrent or mutually exchanged.
Conclusion
Roscorla v Thomas established that past consideration is insufficient to support a subsequent promise, reinforcing the requirement that consideration must be contemporaneous with, or given in exchange for, the promise in order for it to be enforceable in contract law.