Williams v Roffey Bros and Nicholls (Contractors) Ltd
(1990) 1 All ER 512
Facts
P contracted to perform carpentry work for D. When it became apparent he could not complete on time, D promised to pay P extra money to ensure it was completed on time. D would incur liability to a third party if the work was not completed on time. Was D liable to pay the extra amount?
Held
D was liable. Per Glidewell LJ:
If
(1) A enters into a contract with B for the supply of goods or services in return for payment by B; and
(2) Prior to completion B has reason to doubt whether A will complete; and
(3) B then promise A additional payment in return for B promising to perform on time; and
(4) As a result of this promise B obtains a benefit or obviates a disbenefit [eg, liability to third party]; and
(5) B’s promise is not given as a result of A’s economic duress or fraud
Then
(6) The benefit to B (or obviation of disbenefit) is capable of being good consideration for B’s promise
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