- A promise can be good consideration for a contract even if the same thing was promised to a third party in another contract.
- C had promised under a contract with third party X to deliver cargo of coal to D.
- D told C that “in consideration” of C delivering coal to them, they will unload it at a stated rate.
- D failed to do so, and C sued for breach.
- D argued that C had not offered good consideration since C was obliged to deliver the coal anyway under its contract with X.
Held (Court of Exchequer)
- D was in breach of contract.
- The delivery of coal was good consideration.
- The case is to be dealt with as though no prior contract had been entered into.
- Performance of existing duty under contract with third party is valid consideration as it still confers benefit upon the other party.
- While the same consideration can only be used once against one person, it can be used as consideration to different promises from different people.