- •Contents
- •General editors’ preface
- •Contributors
- •Table of legislation
- •Austria
- •Belgium
- •England
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Portugal
- •Scotland
- •Spain
- •Abbreviations
- •Austria
- •Belgium
- •England
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •The Netherlands
- •Portugal
- •Scotland
- •Spain
- •Other sections
- •1 Some perennial problems
- •I. The architecture of contract law
- •B. Common law
- •II. The questions
- •2 Contemporary solutions
- •Case 1: promises of gifts
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •General principles:
- •Exceptions
- •Case 2: promises of compensation for services rendered without charge
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 3: promises to pay debts not legally due
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 4: a promise to come to dinner
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 5: promises to store goods without charge
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 6: promises to do a favour
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 7: promises to loan goods without charge
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 8: a requirements contract
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 9: promises to pay more than was agreed I
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 10: promises to pay more than was agreed II
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 11: promises to do more than was agreed; promises to waive a condition
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 12: promises to take less than was agreed
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 13: options given without charge
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 14: promises of rewards
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •Case 15: promises of commissions
- •Case
- •Discussions
- •FRANCE
- •BELGIUM
- •THE NETHERLANDS
- •SPAIN
- •PORTUGAL
- •ITALY
- •AUSTRIA
- •GERMANY
- •GREECE
- •SCOTLAND
- •ENGLAND
- •IRELAND
- •Summaries
- •Preliminary comparisons
- •3 Comparisons
- •I. Gifts and favours
- •A. Promises of money or property
- •1. Obstacles to giving gifts
- •2. Exceptions for meritorious gifts
- •3. Protecting reliance
- •B. Favours that need not entail expense
- •1. Favours that can no longer be performed costlessly
- •a. Promises to loan goods
- •b. Promises to take care of goods
- •2. A broken promise to do a service
- •3. A note on the ‘intention to be legally bound’
- •C. What is left of Roman contract law?
- •1. Promises to perform contractual obligations that are legally unenforceable
- •III. The absence of commitment
- •A. Open terms and options
- •B. Locus poenitentiae
- •IV. Epilogue
- •A. The results
- •B. The doctrines
- •C. The search for solutions
- •1. Gifts and favours
- •a. Promises of money or property
- •b. Favours that need not entail expense
- •3. The absence of commitment
- •a. Open terms and options
- •b. Promises conditional upon success
- •Index by country
- •Austria
- •Belgium
- •England
- •France
- •Germany
- •Greece
- •Ireland
- •Italy
- •Netherlands
- •Portugal
- •Scotland
- •Spain
- •United States
- •Index by subject
236 the enforceabilit y of promises
9(b)? Leaving aside the issue of duress for a moment, it seems that the promise would be enforceable if Robert could show that Paul secured a benefit or avoided a detriment in return for Robert’s promise to complete his existing contractual obligations. In the case of the contract to restructure the building (Case 9(a)), this appears quite similar to the contract under discussion in the Williams case, and it seems quite possible that Robert could show that Paul gained a commercial advantage by Robert’s discharge of his existing contractual duties. The circumstances of the contract for the sale of restaurant equipment (Case 9(b)) appear somewhat weaker and it would be more difficult to show the necessary benefit accruing to Paul from the mere discharge of the contractual obligations. The trouble and expense of having to enter a new contract appear far less in this case.
In any event, the overriding proviso in the Williams case was that the promise was not the result of economic duress. In the present case, unlike in Williams, Robert refused to continue unless he received the extra amount. An Irish court would almost certainly hold that Paul’s promise was vitiated by duress and that he was not obliged to pay the extra amount.
The test for duress is whether the threat actually coerced the will of the person to whom it was addressed. Treitel55 states that the English courts will consider what alternative courses of action, other than submission to the threat, were reasonably available to that person. For example, taking legal proceedings may have been a viable alternative. There is no Irish authority on this proposition of legal proceedings being a viable alternative and it is unlikely that an Irish court would adopt this approach. The Irish courts tend to accept arguments by parties that legal proceedings are costly and time consuming and therefore amount to a last resort.
Summaries
France: Whether relief would be given for duress is not clear since French courts have been hesitant to consider economic pressure to be duress. Belgium: Relief would be given for duress.
The Netherlands: If nothing changed except that Paul became completely dependent on Robert to keep his promise, relief would be given for ‘abuse of circumstances’ which means taking advantage of the other party’s ‘state of necessity, dependency, wantonness, abnormal mental condition
55 See Treitel, Contract, ch. 11.
c ase 9: paying more than was agreed i |
237 |
or inexperience’. Most likely, Paul was completely dependent, but the matter is not clear. Relief may also be given for duress.
Spain: Most likely, the promise is unenforceable on the grounds that it is not a valid novation. The causa of a valid novation is the modification of the former obligation, and a change in the amount owed does not count as such a modification. Relief would probably not be given for duress since the harm threatened must be imminent and serious, and here, Paul would suffer only some delay.
Portugal: The promises are probably enforceable despite the claim of duress since the threat was not to commit an illegal act. They probably are unenforceable for ‘usury’, which is the exploitation of another’s state of necessity to obtain unjustified or excessive benefits.
Italy: Relief would be given for duress.
Austria: Most likely, relief would be given for duress. Germany: Relief would be given for duress.
Greece: Relief would be given for duress. It could also be given for the exploitation of another person’s need in a manner contrary to morality. Scotland: Relief would probably not be given for duress since Paul could have sued for damages if Robert breached.
England: Neither promise is binding. Once it would have been said that there is no fresh consideration. Recently, however, it has been held that there is consideration for a promise if the promisor receives a ‘practical benefit’, even if the benefit is the performance of a pre-existing legal duty. But relief would be given for duress.
Ireland: Neither promise is binding. Once it would have been said that there is no fresh consideration. Recently, however, an English court held that there is consideration for a promise if the promisor receives a ‘practical benefit’, even if the benefit is the performance of a pre-existing legal duty. It is not clear whether this decision will be followed in Ireland. Even if it were, relief would be given for duress.
Preliminary comparisons
Duress and exploitation: Virtually all reporters discussed the possibility of relief for duress. Seven thought it likely (Belgium, Italy, Austria, Germany, Greece, England, and Ireland); two thought it possible (France and the Netherlands); three thought it unlikely (Spain, Portugal, Scotland). Nevertheless, relief would be given anyway, in the Netherlands, for ‘abuse of circumstances’, in Spain, because a mere change in the amount owed does not constitute a novation, and in Portugal, because the agreement
238 the enforceabilit y of promises
was made by exploiting another’s state of necessity. Thus only the reporters from two countries thought the promises might be enforceable (France and Scotland). The Greek reporter also believed that the promise might be voidable on the grounds that another person’s need was exploited in a manner contrary to morality.
Consideration: The two common law reporters noted that once, the promises would have been unenforceable because they lack fresh consideration, although the approach now taken in England, which may be followed in Ireland, is to count the performance of a pre-existing contractual duty as consideration if the promisor receives a ‘practical benefit’.