One can also question the actual consideration of compensation, since it is the promise to honour the contractual obligations already existing to Fu Chip. There is no doubt that a promise to honour an existing contractual obligation to a third party can be a valid consideration – New Zealand Shipping. Unless the guarantee was unlawful or not was rendered out of obligation, the extrinsic evidence proves that it was supported by a consideration. P made a deal to marry Ellen. His uncle, who congratulated him, said, “I will pay you 150 a year for my life, until you reach 600 pa as a lawyer.” When the uncle died, the complainant tried to recover the arrears. The personal representatives argued that the applicant is contractually obliged to marry, therefore no consideration. The court found that the marriage was a matter of interest to the uncle and that he benefited from his arrest, so there was reflection. When an act is executed, a subsequent payment commitment is not applicable in reference to that act, since the consideration was terminated. Discuss your agreement with a contract lawyer and let it clarify. Call us to speak to a contract law lawyer on 44 20 7036 9282 or email us at firstname.lastname@example.org. Hero: Paying less per day to the satisfaction of a larger one cannot be a satisfaction for the whole. But donating a horse, falcon or dress could be more advantageous than money. But where all the money is owed, the acceptance of part of that sum cannot in any way be a satisfaction for the whole.
But paying part of it before the day the whole thing is due could be more advantageous. Similarly, if I have to pay you 10 at Westminster and you say you will accept five at York, that will be a good satisfaction for all of this. In Eastwood v Kenyon, a girl`s caretaker has arranged a loan to educate the girl and improve her chances of marriage. After her wedding, her husband promised to repay the loan. It was found that the guardian failed to keep the promise, since the loan to raise and educate the girl was late because it was over before the husband promised to repay it.  A commitment to fulfil an existing contractual obligation to a third party (as opposed to the performance of that obligation) may also be a consideration.  A promise to pay part of a debt is not a sufficient consideration to pay a larger debt. This is because there is no new consideration for the payment of a smaller amount of money. Lack of consideration is one reason why a promise is not recognized by the courts. It should be noted that the concept of reflection is unique to the English common law.
Other systems, such as European civil law, will make free promises (Khouri and Yamouni – Understanding Contract Law) have found that the Eurymedon case applies to all types of freight transport to Huntley JA at 438. “If there is an agreement between the two parties, it is not necessary for each side to suffer harm as well.” A confederation, not to sue, obliges a party who could bring a lawsuit not to do so. Confederation is expressly concluded between two parties and one in three people who wish to assert a right is legally entitled to do so. Alliances that are not pursued are used to resolve specific legal issues outside the judicial system. Contracting parties can enter into such an agreement in order to avoid lengthy and costly legal action. In exchange for Confederation, compensation may be awarded to the party who may claim damages or can be assured that the other party will perform a particular act.