Alliance Bank v Broom [1864]

Facts

  • Broom owed the bank money in an unsecured loan
  • The bank asked for some security, which be defendant agreed to provide
  • The bank proceeded to enforce the debt with Broom
  • Broom argued that the bank had provided no consideration for his promise to provide security

Issue

  • Could promising not to sue Broom constitute good consideration for ┬áhis promise to provide security for the debt

Decision

  • Yes, claim allowed

Reasoning

  • Forbearance to sue can be valid consideration
RELATED CASE  Hadley v Baxendale [1854]

Posted in Contract Law Revision Notes.

This page was last updated on 20th January 2014

© 2020 Webstroke Law - Terms and Privacy Policy