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Additional resources for Contract Law: Uk Edition
Pao later realised that this might benefit Lau more if the shares rose in value and therefore refused to carry out the contract unless the subsidiary arrangement was scrapped and replaced with a straightforward indemnity by Lau against a fall in the value of the shares. Lau could have sued at this point for breach of contract but, fearing a loss of public confidence in his company as a result, agreed to the new terms. ) When the value of the shares did then fall, Lau refused to honour the agreement and Pao then sought to 28 Contract Law enforce the indemnity.
Mary, a student, asks Donald, her teacher, if he will give her good tuition for which she will pay him £100. a) There is a contract. Mary will have to pay the £100 to Donald. b) Mary will be able to sue Donald if his tuition is not good. c) Donald cannot demand the £100 from Mary. He is only doing his duty. d) Donald can sue for the £100 if Mary does not pay it. 2. Sid, the manager of a firm, promises Danny, a packer, £100 on top of his wages if he will stay late at work one evening to get out a rush order.
10. How does the case of Shanklin Pier v Detel Products contradict or modify the basic rule? 11. In what ways could the rule that consideration must move from the promisee be said to be unfair? 12. What is the distinguishing feature, if any, between Stilk v Myrick and Hartley v Ponsonby? 13. Why is it difficult to see the distinction between the principles in Stilk v Myrick and Williams v Roffey Bros & Nicholls? 14. Why exactly did Pau On succeed in the case of Pao On v Lau Yiu Long? 15. Is there any relevance to promissory estoppel in the modern day?