What is the ratio in Scotson v Pegg?

Performing a contractual duty owed to a third party can constitute valid consideration for a separate contract with a different party.

What did the court decide in Scotson v Pegg?

The court held that Scotson's delivery of coal (performed under his duty to A) constituted valid consideration for Pegg's promise to unload at the agreed rate.

Why is Scotson v Pegg important for contract law?

It clarifies that the existing duty rule only applies to duties owed to the same party, allowing greater flexibility in finding consideration in commercial arrangements.

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