“Practical benefit constitutes consideration for contract variations”
Roffey Brothers engaged Williams as a carpenter for £20,000 to refurbish 27 flats. When Williams faced financial difficulties that threatened timely completion, Roffey promised an additional £10,300 (£575 per completed flat) to ensure the work was finished on time. Williams completed 8 more flats but Roffey only paid £1,500 of the additional sum.
Whether there was sufficient consideration for the defendants' promise to pay additional money when the plaintiff was only performing his existing contractual obligations.
The Court of Appeal held that the promise to pay additional money was enforceable. There was sufficient consideration in the form of practical benefits obtained by the defendants, including avoiding penalties under the main contract and the expense of engaging replacement contractors.
This decision significantly liberalized the doctrine of consideration by recognizing practical commercial benefit as sufficient consideration, making it easier to enforce contract variations and reflecting modern commercial realities.
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OSCOLA Citation
Williams v Roffey Brothers & Nicholls (Contractors) Ltd [1989] EWCA Civ 5, [1991] 1 QB 1
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