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10 the enforceabilit y of promises

deliberation was particularly necessary was left obscure. The rules that governed gratuitous loans, deposits, and pledges were often different from those governing either gift or exchange, but the reason why was no longer clear.

On the eve of the twentieth century, then, the civil law was the product of three quite distinct historical influences: the Roman system of particular contracts; the late scholastic and natural law theories of fidelity, liberality, and commutative justice; and the nineteenth-century will theories.

B. Common law

The common law was not taught in universities until the eighteenth century. The common lawyers were either practitioners or judges, and, until the nineteenth century, there was little literature on what we call contract law aside from the reports of decided cases.44 Blackstone devoted only a few pages to contract. The first treatise on the common law of contract was written by Powell in 1790.45 Until the nineteenth century, the law was organized, not according to doctrines or principles, but by writs. A writ was needed to bring a case before the royal courts, and eventually the number of writs was limited. To succeed, a plaintiff had to bring his case within one of these writs.

What we call the common law of contract grew out of two writs. One was covenant which could be used to enforce a promise given under seal, a formality originally performed by making an impression in wax on a document containing the promise. The other was assumpsit. To recover in assumpsit, the promise had to have ‘consideration’.

There is a famous and inconclusive debate over whether the common law courts borrowed the idea that a promise needs consideration from the civil idea of causa. However that may have been, the doctrines had quite different functions. The doctrine of causa, as we have seen, identified the reasons why, in principle or in theory, a party might make a promise or the law might enforce one. The doctrine of consideration was a pragmatic tool for limiting actions on a promise to those cases in which courts thought an action was appropriate. These cases were so heterogeneous that the term ‘consideration’ had no single meaning.

In some of these cases, the promise was made to obtain something in return. But in some it was not. The promise of a father to give money or

44 A. W. B. Simpson, ‘Innovation in Nineteenth Century Contract Law’, LQ Rev. 91 (1975), 247

at 250–1.

45 J. Powell, Essay upon the Law of Contracts and Agreements (London, 1790).

some perennial problems

11

land to a man who was to marry his daughter had consideration. The consideration was sometimes said to be a gain or benefit the father derived from seeing his daughter married.46 It was sometimes said to be parental love and affection.47 Gratuitous loans and bailments had consideration. Sometimes the consideration was said to be the benefit to the party who received the goods.48 Lord Coke said that ‘every consideration . . . must be to the benefit of the defendant or charge to the plaintiff’,49 and this formula – benefit to the promisor or detriment to the promisee – was often repeated. Yet as A. W. B. Simpson has noted, it can only be applied to the marriage cases by very artificial reasoning.50 Moreover, in one famous case in which the promisor had agreed to transport the promisee’s cask of brandy free of charge, the consideration was said to be the delivery of the cask, even though delivering it was neither a benefit to the promisor nor a detriment to the promisee.51 Sometimes, as Simpson points out, the consideration was that the promisor agreed to do something he already ought to do: for example, return a lost dog, or pay a debt.52 Promises to pay debts barred by the statute of limitations53 or discharged in bankruptcy54 or incurred as a minor55 were held to be actionable. Sometimes the consideration in such cases was said to be the fulfilment of a moral obligation.

Conversely, sometimes there was held to be no consideration for a promise even though the promise was not made to confer a gratuitous benefit on the promisee. There was no consideration for a creditor’s promise to take less than the amount due if he were paid immediately.56 There was no consideration to pay more for a performance that the promisee had already agreed to do for less.57

The common law judges had never felt a need to explain the doctrine of consideration with much precision. Beginning with Blackstone, however, treatise writers tried to describe English law more systematically. One innovation was to say that the rules that governed actions of covenant and assumpsit constituted an English law of contract. Another was to look for a conceptual structure underlying these rules. Part of that task was to try to define consideration. A first step was taken when Blackstone and Powell,

46 Sharrington v. Strotton (1556) Plowden 298 at 301.

47 Plowden 298 at 303.

48Byne v. Playne (1589) 1 Leon. 220, Cro. Eliz. 218.

49Stone v. Wythipol (1588) Cro. Eliz. 126, 1 Leon. 113, Owen 94, Latch 21.

50A. W. B. Simpson, A History of the Common Law of Contract: the Rise of the Action of Assumpsit

 

(1987), 487.

51 Coggs v. Bernard (1703) Holt 13, 131, 528, 2 Ld Raym 909.

52

Simpson, History, 485–6.

53 Hylings v. Hastings (1699) 1 Ld Raym 389, 421.

54

Trueman v. Fenton (1777) 2 Cowp. 544.

55 Ball v. Hesketh (1697) Comb. 381.

56

Cumber v. Wane (1721) 1 Strange 426, followed in the famous case of Foakes v. Beer (1884) 9

 

App. Cas. 605.

57 Stilck v. Myrick (1809) 2 Camp. 317, 6 Esp. 129.

12 the enforceabilit y of promises

drawing on continental learning, identified consideration with the causa of an onerous contract.58 As Simpson has observed, early nineteenthcentury treatise writers regarded consideration as a local version of the doctrine of causa.59 They did not explain why, if that was so, consideration was sometimes present when there was no exchange. Nevertheless, once this step had been taken, the common law of contract began to look on paper as though it had the structure of continental law. Contracts were either bargains, in which case they were enforceable without a formality in assumpsit, or they were liberalities, in which case they were enforceable with the formality of a seal in covenant.

The first truly systematic treatise on the law of contract was written by Sir Frederick Pollock late in the century. Like the earlier treatise writers, he identified consideration with the presence of an exchange or bargain. He thought, however, that he could bring all or most of the decided cases within a single definition of bargain. While consideration had frequently been said to be either a benefit to the promisor or a burden to the promisee, the important element, he said, was that the promisee have incurred some detriment by doing or promising to do something which he was not already obligated to do. If the promisor had ‘bargained’ for him to incur this detriment, there was consideration. ‘[W]hatever a man chooses to bargain for must be conclusively taken to be of some value to him.’60 That was so even if the man himself had received nothing, consideration having moved to a third party. Therefore, consideration meant simply that one party ‘abandons some legal right in the present, or limits his legal freedom of action in the future, as an inducement for the promise’ of the other party.61 This formulation became widely accepted not only in England but also in the United States. It was borrowed by Oliver Wendell Holmes62 and Samuel Williston63 and has appeared in both the first and second Restatement of Contracts.64

The formulation could be made to fit the cases in which the promise was to reduce a debt in return for immediate payment or to pay more for a performance than originally agreed. In these cases, supposedly, the promise

58W. Blackstone, Commentaries on the Laws of England, vol. II (London, 1766, repr. Chicago, 1979), *444–6; J. Powell, Contracts and Agreements, vol. I (London, 1790), 331.

59Simpson, ‘Innovation’, 262.

60 F. Pollock, Principles of Contract, 9th edn (London, 1921), 186.

61 Ibid., 177.

62O. W. Holmes, Jr, The Common Law (1881), 293–4. On the debt to Pollock, see Letter from Holmes to Pollock, 17 June 1880, in M. Howe (ed.), Holmes–Pollock Letters, 2nd edn, vol. I (1961), 276.

63S. Williston, ‘Consideration in Bilateral Contracts’, Harv. L. Rev. 27 (1914), 503 at 527–8.

64Restatement of Contracts (1932), § 75; Restatement (Second) of Contracts (1979), § 71.

some perennial problems

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could not have been made to induce the promisee to incur a detriment because, legally, it was not a detriment for him to pay or do what he was already under a legal duty to pay or do. It could fit some of the cases of gratuitous loans or bailments: the borrower’s promise to take care of the property loaned was made, at least in part, to induce the lender to make the loan. Pollock even thought that the formula explained why there was consideration for a promise of a gift to those about to marry: it was made, at least in part, so that they would marry.65 He rejected the explanation an English court had given in Hammersley v. De Beil66 that the promisor was bound because he had made ‘representations’ on which the promisee had ‘acted’. Had he not done so, the English might have developed a doctrine of promissory estoppel considerably earlier.67 Williston, in his edition of Pollock’s treatise, noted that the rationale of Hammersley explained certain American decisions better than the bargained-for-detriment formula for consideration.68 Williston included the principle of promissory estoppel along with the bargained-for-detriment formula in the first Restatement,69 and the success of this principle in the United States may have influenced Lord Denning when he adopted a more moderate version of it in Central London Property Trust v. High Trees House Ltd in 1947.70

Nevertheless, there were some cases that the formula did not fit, strain as one might. It did not fit the case in which a person promised gratuitously to take care of property he could not use himself, as in the case of the promise to transport another’s cask of brandy. It did not fit any of the cases in which the promise was to perform a pre-existing legal or purely moral obligation.

Paradoxically, these efforts to explain consideration were made at the same time that the common lawyers were also turning to ‘will theories’. As Simpson has said, they regarded the will as a sort of Grundnorm from which as many rules as possible were to be derived.71 But if contracts were enforceable simply because of the will of the parties, then it was hard to see why whatever the parties willed should not be enforceable. In the nineteenth century, the common lawyers did not think they had to justify the doctrine of consideration. It was simply part of English positive law, and their job was simply to explain what it meant.

65 See Pollock, Principles of Contract 186, 757–8.

66 (1845) 12 Cl. & F. 45, 62, 88.

67Pollock, Principles of Contract, 757–65.

68F. Pollock in G. H. Wald and S. Williston (eds.), Principles of Contract, 3rd American edn (1906), 650 n. 1.

69Restatement of Contracts § 90 (1932), even though, in his treatise, he had said that the doctrine ‘at present . . . is opposed to the great weight of authority’. S. Williston, The Law

of Contracts, vol. I (1920), § 139.

70 [1947] KB 130.

71 Simpson, ‘Innovation’, 266.

14 the enforceabilit y of promises

In the nineteenth century, moreover, common lawyers found two additional ways to limit the enforceability of promises that seemed more compatible with will theories. One was to insist that the parties must have intended their promise to be legally binding. As we have seen, civil lawyers had said that they must since at least the time of Molina. In the nineteenth century, English treatise writers such as Pollock began to mention such a requirement,72 and in the famous case of Balfour v. Balfour, English courts accepted it.73

The second way was the doctrine of offer and acceptance. In civil law, the question of whether an offer was binding without an acceptance had been addressed only obliquely by the Romans. Some late scholastics such as Soto, Molina, and Covarruvias thought that since an offer was a promise and a promise should be binding, in principle, an acceptance was not needed.74 Lessius disagreed on the grounds that the promisee’s acceptance was usually a sine qua non condition of the promise.75 The Scots jurist Stair concluded that a promise was binding as long as it was not conditional on acceptance.76 His view passed into modern Scots law: a promise not conditional on acceptance constitutes a ‘unilateral obligation’, in contrast to ‘mutual contract’, which requires an offer and an acceptance.77 Grotius simply said that a promise requires an acceptance.78 His opinion was followed by Pufendorf, Barbeyrac, and Pothier,79 and passed into continental civil law. The English finally adopted it in the late eighteenth and early nineteenth centuries.80 Common law treatise writers, like some of the civil lawyers, explained it as a consequence of the will theory: contract was the will of the parties, and therefore each had to express his will to be bound. When they did so seriatim, an offer was followed by an acceptance, and the contract was not formed until the acceptance because, until then, both parties had not expressed their will.81

In this study, we will be concerned with only one of the uses to which

72 Pollock, Principles of Contract, 3.

73 (1919) 2 KB 571, 578.

74Soto, De iustitia et iure, lib. 3, q. 5, art. 3; Molina, De iustitia et iure, disp. 263; D. Covarruvias, Variarum ex iure pontificio, regio et caesareo resolutionum (Lyons, 1568), p. 2, § 2,

 

no. ult., § 4, no. 6.

75 Lessius, De iustitia et iure, lib. 2, cap. 18, dub. 8.

76

Stair, Institutions of the Law of Scotland, I.x.4. On the influence of Molina on Stair, see A.

 

Rodger, ‘Molina, Stair, and the Ius Quaesitum Tertio’, Jur. Rev. 14 (1969), 34.

77

Gloag and Henderson, Law of Scotland, § 5.1.

78 Grotius, De iure belli ac pacis, II.xi.14.

79Pufendorf, De iure naturae et gentium, III.vi.15; J. Barbeyrac, La droit de la nature et des gens

. . . par le baron de Pufendorf (Amsterdam, 1734), II.xi.15; Pothier, Traité des obligations, § 4.

80See Payne v. Cave (1789) 3 Term. R. 148; Cooke v. Oxley (1790) 3 Term. R. 653; Adams v. Lindsell (1818) 1 Barn. & Ald. 681.

81Pollock warned against this tendency to regard the need for an offer and acceptance as arising from the very definition of contract. Pollock, Principles of Contract, 10–11.