<Ul> <Li> Hanson v Royden, the promisee has done, or has promised to do, more than he was obliged to do under his contract . </Li> <Li> Hartley v Ponsonby before the fresh promise was made, circumstances had arisen which would have entitled the promisee to refuse to carry out his obligations under his contract . </Li> </Ul> <Li> Hanson v Royden, the promisee has done, or has promised to do, more than he was obliged to do under his contract . </Li> <Li> Hartley v Ponsonby before the fresh promise was made, circumstances had arisen which would have entitled the promisee to refuse to carry out his obligations under his contract . </Li> <P> However, the strictness of this rule was severely limited in Williams v Roffey Bros & Nicholls (Contractors) Ltd . The Roffey Brothers entered into a contract to refurbish a block of flats for a fixed price of £ 20,000 . They sub-contracted carpentry work to Williams . It became apparent that Williams was threatened by financial difficulties and would not be able to complete his work on time . This would have breached a term in the main contract, incurring a penalty . Roffey Brothers offered to pay Williams an additional £ 575 for each flat completed . Williams continued to work on this basis, but soon it became apparent that Roffey Brothers were not going to pay the additional money . He ceased work and sued Roffey Brothers for the extra money, for the eight flats he had completed after the promise of additional payment . The Court of Appeal held that Roffey Brothers must pay Williams the extra money, as they had enjoyed practical benefits from the promise they had made to Williams . The benefits they received from it include: Having the work completed on time, not having to spend money and time seeking another carpenter and not having to pay the penalty . In the circumstances, these benefits were sufficient to provide consideration for the promise made to Williams of additional payment . It now seems that the performance of an existing duty may constitute consideration for a new promise, in the circumstances where no duress or fraud are found and where the practical benefits are to the promisor . The performance of an existing contractual duty owed to the promisor is not good consideration for a fresh promise given by the promisor . However, performance of an existing contractual duty owed to a third party can be good consideration, see further below . </P>

Is one in which the promised terms of the contract are discussed by the parties