Facts
- The defendant (uncle) promised to pay the plaintiff (nephew) an annual sum of £150 until the nephew’s income reached 600 guineas per annum.
- This promise was contingent upon the nephew marrying his fiancée.
- The nephew married his fiancée, thus fulfilling the condition, and the uncle paid the promised sum for a period.
- Upon the uncle's death, the payments ceased, prompting the nephew to bring legal action against the uncle’s estate for the unpaid sums.
- The uncle’s estate argued that the nephew provided no valid consideration since the marriage contract was between the nephew and his fiancée, not with the uncle.
Issues
- Whether the performance of a pre-existing contractual duty owed to a third party (the marriage to the fiancée) can constitute valid consideration for a promise made by another party (the uncle).
- Whether the uncle's promise was enforceable or amounted merely to a voluntary gift due to lack of direct consideration.
Decision
- The court held that the nephew’s marriage to his fiancée constituted valid consideration for the uncle’s promise, despite the duty being owed to a third party, not the uncle.
- It was determined that the uncle’s promise acted as an inducement for the nephew to marry, resulting in a detriment to the nephew and a potential benefit to the uncle.
- The judgment recognized that detriment to the promisee or benefit to the promisor arising from actions performed under a third-party contract could suffice for consideration.
- The uncle’s estate was held liable for the remaining promised payments.
Legal Principles
- Performance of a pre-existing contractual obligation owed to a third party can amount to valid consideration for a new promise.
- Consideration may consist of detriment to the promisee or benefit to the promisor, even if stemming from obligations relating to a third party.
- The courts adopted a flexible approach to the doctrine of consideration, broadening its scope beyond direct exchanges between the immediate parties.
Conclusion
Shadwell v Shadwell established that a party's fulfilment of a pre-existing duty to a third party can constitute sufficient consideration for a separate contract, thereby expanding the traditional boundaries of consideration within English contract law.