Chappel v Nestle [1960]

Facts

  • Nestle ran a promotion whereby 3 sweet wrappers and 1 shilling could be sent by post to be sent back a record valued at 6 shillings
  • Chappel, a record seller, applied for an injunction to prevent the sale at such a price, as Nestle was not paying the statute-required 6.25% of the purchase price (of 6 shillings) to the copyright holders

Issue

  • Could the sweet wrappers constitute good consideration for the purchase of the records; if so the value of the records was not quantifiable and the claim would fail

Decision

  • Sweet wrappers could be good consideration

Reasoning

  • Consideration need not be sufficient
  • Nestle encouraged sales of sweets therefore the consideration was valuable to them
RELATED CASE  Pau On v Lau Yiu Long [1980]

Posted in Contract Law Revision Notes.

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