CIMA BA4 · Chapter 10 · Question 9 of 10
A builder agrees to complete work for a fixed price. Midway, the client, worried about delay penalties under its own contract, promises extra payment if the builder finishes on time. The builder does so. Under English law, which case most supports the builder enforcing the extra payment?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Williams v Roffey Bros, because the client obtained a practical benefit and there was no duress
Explanation
Performing an existing contractual duty owed to the promisor is generally not good consideration (Stilk v Myrick). However, Williams v Roffey Bros held that where the promisor obtains a practical benefit, such as avoiding a penalty clause, and there is no economic duress or fraud, the promise of extra payment can be enforced. Foakes v Beer concerns part payment of debts.
More Law of contract: formation MCQs
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- Q2Under English law, which of the following terminates an offer?
- Q3Under English law, which of the following is presumed NOT to be intended to create legal relations?
- Q4On 1 March, Ann posts a letter accepting Ben's offer. On 2 March, Ben posts a letter revoking the offer. Ann's letter arrives on 3 March…
- Q5Under English law, which statement about consideration is correct?
