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Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 31300
Experience:  Over 5 years in practice
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In Contract Law I understand there has to be consideration

Customer Question

In Contract Law I understand there has to be consideration on both sides. Is there a valid contract between Co A and person C in the following scenario:

1) Co A wants to take over Co B.
2) Co B owes money to Co X.
3) Co B owes money to former employee, person C.
4) Co X is suing Co B and person C personally.
5) Co A offers to pay person C a smaller sum if (a) person C will relinquish his rights from Co B and (b) Co A undertakes to attempt an amicable settlement with Co X, if necessary paying Co X the full amount of the debt in order to settle their claim against CoB and person C personally. Person C agrees.

After the agreement is reached, Co A pays person C and takes over Co B. But it emerges that Co A had no intention of reaching an amicable settlement with Co X and instead denied the debt from Co B to Co X was a debt and the legal action continued.

What I would like confirmation of please is that just because Co A declared an intention or gave an assurance or representation to person C and could never guarantee reaching an amicable settlement because, for example, Co X would have to agree, nevertheless it would normally constitute a term of the contract, especially if evidence exists to support it. Please confirm that person C could claim breach of contract and damages against Co A.
Submitted: 3 years ago.
Category: Law
Expert:  Nicola-mod replied 3 years ago.

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!
Customer: replied 3 years ago.

Yes, this is urgent. It should be a simple question of contract.

Expert:  Nicola-mod replied 3 years ago.

We will continue to look for a Professional to assist you.

Thank you for your patience,
Expert:  Alex J. replied 3 years ago.

Thank you you for question and welcome.

My name is AJ and I will assist you.

What is the nature of the document that was signed between company A and person C - did it say person C would give any claim against B conditional upon company A:
(i) Paying a sum of money; and
(ii) Settling the court claim by x?

Kind regards


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