Shadwell v Shadwell (1860) 9 CB NS 159

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

1. 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).
2. 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.