The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:
This Practice Note examines the doctrine of consideration and the key role it plays in English law in determining whether a contract is enforceable.
A promise will only be capable of being contractually enforced if it is either made in a deed or made in exchange for something of value, known as 'consideration'. This Practice Note considers what amounts to valid consideration.
Note: settlement offers made under CPR Part 36 operate outside the general rules of contract law and are governed by the specific regime set out in CPR 36. See Practice Notes: Part 36 offers—what are they, why make them? and Part 36 offers—how to make a valid Part 36 offer.
For guidance on the specific requirements for documenting promises by way of a deed, see Practice Note: Deeds.
Consideration is a key ingredient for an enforceable contract. It is concerned with what one party gives or promises in exchange for a promise or performance from another party. It requires 'something of value' to be given for the promise.
There is a rule that 'consideration must move from the promisee'—this means that a person to whom a promise is made can only enforce the promise if they have provided consideration for it.
There is no corresponding requirement that consideration moves to the promisor. Thus, the promisee may provide consideration by doing an act (eg giving up a
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This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing ratio•leverage ratio (or debt to equity ratio)•current ratio (or acid test ratio)•cashflow ratio•interest cover ratio, and•loan to value ratioIt explains:
This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.You should also consider if the proceedings will be
Millett LJ subdivided types of constructive trust into two categories, distinguishing between:•the constructive trust proper, where equity intervenes to prevent the legal owner from unconscionably denying the beneficial interest of another (known as the institutional constructive trust)•the
This practice note provides an introduction to tort law by addressing three questions:•what does the concept of being liable in tort mean? And how does tort relate to contract and criminal law•how has the law of tort developed?•what is the scope of tort, ie what interests does it protect? What
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