496 at p.509: "The significance of silence, as a matter of law, may also be different when there is an express undertaking or an implied obligation to speak, in the special circumstances of the particular case". The case of White v Bluett(1853) 23 LJ Ex 36 is a good starting point for examining the definition of ‘economic value’. But that cannot be spelt out of Mr. ffooks' evidence as to what he agreed with Mr. Polland. The Revenue took two points on this contention, each of which was accepted by the Judge. First, as Mr. Polland had no actual or ostensible authority to make the agreement claimed by the Company, he had no authority to make the promise said to found the estoppel against the Revenue. However, the court also considered the question of consideration. Mr. Charles, for the Revenue, drew our attention to the general rule that silence will not normally amount to acceptance of an offer since acceptance cannot be inferred from silence alone "save in the most exceptional circumstances" (Allied Marine Ltd. v Vale do Rio Doce S.A. [1985] 1 W.L.R. In the Court of Appeal Peter Gibson LJ noted that he saw the force of the argument that a contract should be Re Selectmove [1995] 1 WLR 474 Facts: D owed tax to Inland Revenue, D was in financial difficulties & offered to pay £1000 arrears per month; D made several payments by instalment, then Inland Revenue demanded the full arrears immediately; D argued principle in Williams v Roffey Bros & Nicholls (Contractors) Ltd [1991] should apply ; Issue: He further said that he told Mr. Polland that because of the lengthy credit terms usual in the publishing industry, even if the Company continued to trade at a profit, this would not be reflected in cash coming in to the Company for 4 or 5 months. On 7 September 1992 the Revenue presented its winding up petition based on a claimed debt of 17,466.60. The defendant agreed to make additional payments to the plaintiff in return for his promise to carry out his existing obligations. The Judge said: "It is not asserted.... that Mr. Polland said anything to the effect, "if you do not hear from me, take it that there is an agreement between us."" When a creditor and a debtor who are at arm's length reach agreement on the payment of … In spite of this, it will be covered why the Court of Appeal find impossible to extend the principle of Williams’ case to any circumstances. As his Lordship put it, in forceful language. Nevertheless, the rule in Pinnel's Case is confined. I see no reason in principle why that should not be an exceptional circumstance such that the offer can be accepted by silence. Between August and November 19… ... Ltd v Credit du Nord [1989] 1 WLR 255 esp at 265 and 268-269. If courts allow parties to act upon their strict legal rights it would be unfair on the new promise they have made to the other party. 2 [1995] 1 WLR 474. In Re Selectmove ([1995] 1 WLR 474) ... (Per Peter Gibson LJ ) Promissory Estoppel A chapter on consideration would not be complete without some mention of the doctrine of promissory estoppel. See also Jones & Goodhart, n 2 above, 2. [12] [1962] AC 446 at 472-479. Foakes v Beer was not even referred to in Williams v Roffey Bros Ltd, and it is in my judgment impossible, consistently with the doctrine of precedent, for this court to extend the principle of Williams's case to any circumstances governed by the principle of Foakes v Beer. 5 And see Attorney-General v Colchester Corporation [ 1955] 2 QB 207, 217, per Lord Goddard CJ - ... now also Re Selectmove [1995] 1 WLR 474. Selectmove Ltd. had failed to submit payroll deductions from employees to the Crown. Mr. Nugee submitted that if the agreement was unenforceable for want of consideration the Revenue is nevertheless estopped by the doctrine of promissory estoppel. 15 See Lord Goff, 'Judge, Jurist and Legislature' [1987] … 3 (1884) 9 App Cas 605. The first was that no agreement was concluded by the silence of the Revenue in response to Mr. ffooks' proposal. Accordingly the second element is no more than a promise to pay that which it was bound to pay under the fiscal legislation at the date at which it was bound to make such payment. The other is the promise to pay future PAYE and NIC as they fell due. in terms confined his remarks to a case where B is to do the work for or supply goods or services to A, the same principle must apply where B's obligation is to pay A, and he referred to an article by Adams and Brownsword in. Just better. References: Times 15-Jul-1996, Gazette 29-Aug-1996, [1997] 1 WLR 596, [1996] EWCA Civ 1301, (1997) 33 BMLR 146, [1997] 1 FLR 598, [1997] 8 Med LR 357, [1996] 4 All ER 474, [1997] Fam Law 326, [1997] 2 FCR 651 Links: Bailii Coram: Peter Gibson LJ, Butler-Sloss LJ, Peter Gibson LJ Ratio: A post mortem had been carried out by the defendants. The Judge held that the case fell within the principle of Foakes v Beer (1884) 9 App Cas 605. 12 See n 1 above, 902-903. Dyson LJ also noted that ‘this approach [last shot] has the great merit of providing a degree of certainty which is both desirable and necessary in order to promote effective commercial relationships ... RE Selectmove Ltd [1995] – Obiter dictum: Definition. The plaintiff sued for payment under the original agreement and the further agreement. [11] [1980] 3 All ER 257. The difficulty that I have with this submission stems from the fact that it is trite law that ostensible authority involves a representation by the principal as to the extent of the agent's authority and no representation by the agent as to the extent of his authority can amount to a holding out by his principal (see, for example, Bowstead on Agency (15th ed.) The defendant argued that its promise to make additional payments was unenforceable and relied on Stilk v Myrick (1809) 2 Camp. Similar contentions were advanced by Mr. Nugee for the Company before us, and I shall consider in turn the following issues: (1) Was there an acceptance by the Revenue of Mr. ffooks' proposal? Lord Blackburn (at p.622) expressed his conviction that "all men of business, whether merchants or tradesmen, do every day recognise and act on the ground that prompt payment of a part of their demand may be more beneficial to them than it would be to insist on their rights and enforce payment of the whole". For these reasons despite the able and well-sustained arguments of Mr. Nugee I would dismiss this appeal. There is no doubt as to the correct approach to that issue. There are two elements to the consideration which the Company claims was provided by it to the Revenue. In Armagas Ltd. v Mundogas S.A. [1986] AC 717 the House of Lords expressly approved (at p.779) the following remarks by Robert Goff L.J. ... References: Times 13-Jan-1994, Ind Summary 17-Jan-1994, [1995] 1 WLR 474, [1993] EWCA Civ 8, [1995] STC 406, [1995] 2 All ER 531 Links: Bailii Judges: Balcombe LJ, Stuart Smit LJ, Peter Gibson LJ … ... Gibson LJ in In re Selectmove Ltd understood it, is that a promise by a debtor to repay his creditor in part for the settlement for the full debt can Mr. Nugee however submitted that an additional benefit to the Revenue was conferred by the agreement in that the Revenue stood to derive practical benefits therefrom: it was likely to recover more from not enforcing its debt against the Company, which was known to be in financial difficulties, than from putting the Company into liquidation. In Vanbergen v St. Edmunds Properties Ltd. [1933] 2 K.B. In this essay it will be discussed whether the principle in Williams v Roffey [1990] 2 WLR 1153 should be extend to cover the situation encountered in re Selectmove Ltd. [1995] 1 WLR 474. Yet it is clear that the House of Lords decided that a practical benefit of that nature is not good consideration in law. ... “The facts of the case demonstrate that, if 1) a debtor offers to pay part only of the amount he owes; (2) the creditor … In that case the defendant, which had a building contract, subcontracted work to the plaintiff at a price which left him in financial difficulty and there was a risk that the work would not be completed by the plaintiff. In re Selectmove Ltd [1993] EWCA Civ 8 is an English contract law case, concerning the doctrine of consideration, and part payments of debt. On the same day that the revised agreement was entered into, Rock paid the first ... Beer and by [Peter Gibson LJ] in Re Selectmove. This Court rejected that argument without overruling Stilk v Myrick. But it is unnecessary to express a concluded view on this point. In this case, a father waived his son’s debt on the condition that he stops complaining about his Father’s will. English Articles. system and National Insurance Contributions ("NIC"), the arrears going back to the previous fiscal year. If that extension is to be made, it must be by the House of Lords or, perhaps even more appropriately, by Parliament after consideration by the Law Commission. In Re Selectmove [1995] 1 WLR 474, Peter Gibson LJ held that Roffey Bros-type reasoning was precisely what the House of Lords had rejected in Foakes v Beer. Mr. Polland, he said, asked him if he was in a position to put forward a proposal to pay back the arrears of PAYE and NIC and told him that any proposal should include the prompt payment of any future PAYE and NIC as they fell due. Foakes v Beer was not even referred to in the Williams case, and it is in my judgment impossible, consistently with the doctrine of precedent, for this Court to extend the principle of the Williams case to any circumstances governed by the principle of Foakes v Beer. 49 Machirus Properties, above n 42, at 193,076. On behalf of the Company it was contended before the Judge that it had an arguable case that the Revenue had accepted the proposal put by Mr. ffooks to Mr. Polland on 15 July 1991. Mr A W Charles (instructed by the Solicitor's Department for the Commissioners of the Inland Revenue) appeared on behalf of the Respondent. That argument too was rejected by the Judge on the ground that there was no agreement or promise by the Revenue to give rise to any estoppel. A differently constituted Court of Appeal made these points in In re Selectmove Ltd [1995] 1 WLR 474, and declined to follow Williams v Roffey. 576 at 580 per Buckley L.J.). The jurisdiction of the Companies Court to wind up companies is not for the purpose of deciding a factual dispute concerning a debt which is sought to be relied on to found a petition. On 22 November 1991 a further payment of PAYE and NIC for October and November in the sum of 2,699 was made, again late. change. For my part, as at present advised, I would accept the observation of Evans J. in Gebr. ... O ISSUE 2 – OBITER DICTUM - Ink in teleprinter runs out, but clerk does not ask for the document to be re-sent O Acceptance is effective – the offeror is … Denning LJ created requirements. 4 [1995] 1 WLR 474, 481A-B. In case of any confusion, feel free to reach out to us.Leave your message here. Peter Gibson LJ (Stuart-Smith and Balcombe LJJ concurring) observed that Foakes v Beer precluded any variation of the agreement to repay the debt without good consideration, despite the recent decision in Williams v Roffey Bros Ltd. Peter Gibson LJ stated that ‘it is clear… that a practical benefit of that nature is not good consideration in law’. held to be unenforceable for want of consideration a promise by a ship's captain to seamen, hired to crew the ship to and from the Baltic, of extra pay for working the ship back from the Baltic after two men had deserted. Creating your profile on CaseMine allows you to build your network with fellow lawyers and prospective clients. van Weelde Scheepvaartkantor B.V. v Cia. 3 Millett LJ dissenting. ***Re Selectmove Ltd [1995] 1 WLR 474 – ... Peter Gibson LJ: ICLR & Consideration 2016/ Kathy Brown (ii) In full and final settlement A allows B to pay less at an earlier date (Pinnel’s Casel, supra) or place (Vanbergen v St Edmund's Properties Ltd [1933] 2 KB 233). Gibson LJ said that Williams v Roffey Bros only applied to … In Re Selectmove Ltd [1995] 1 WLR 474, a company owed several thousand pounds in unpaid taxes. Cf: In re Selectmove Ltd [1995] 1 WLR 474 (Gibson LJ) *480 “Mr. Interact directly with CaseMine users looking for advocates in your area of specialization. Mr Polland said he would have to check and would contact the managing director if it was unacceptable. 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Lloyds L.R 1933 ] 2 K.B are vague and indefinite authority there would be much to be said the... 2 points on providing a valid sentiment to this Citation objection taken by Mr. Charles as!
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