CHAR_A01.PDF, page 1-18 @ Normalize ( CHAR_A01.QXD )

It is important to consider the impact of the following recent case on the
existing doctrine.

Owners of the Roffey Williams building (builders) (carpenters) Figure 3.2
The case of Williams v Roffey has caused a huge amount of discussion in the
legal world, mainly because, at least to some extent, it goes against the
traditional requirement of consideration. The carpenters were due to complete
the flats by a certain date in their original contract with the builders. They

54 Contract law

was made with the captain to share the wages of the deserters between

the eight sailors remaining if the ship was sailed on dangerously short-

handed. On return the payment was not made. This time it was held that

the sailors had gone beyond their existing duty, and that the wages of

the deserters should be paid to those remaining. It was suggested, by

way of explanation, that what had happened was so fundamentally

different from the original agreement that the initial contract had been

discharged and a new one formed.

Williams v Roffey (1990)

The defendant builders contracted with the plaintiff carpenters to do

carpentry work on some flats. When the builders found that the carpenters

were in financial difficulty, unable to obtain materials and labour, and

unable to finish the work, they offered extra money to ensure that the

work was completed on time according to the agreement. In turn, the

builders thus avoided paying a penalty under a liquidated damages clause

with the owner of the flats. The carpenters continued, but the builders did

not pay, so the carpenters sued to recover the money promised in the new

agreement. It was held that the carpenters should succeed, as the builders

made a choice to pay them, to avoid the inconvenience of having to find

new carpenters, and that they had avoided the disadvantage of having to

pay a penalty to the owners of the building.

Owners of the

building

Roffey

(builders)

Williams

(carpenters)

Original contract

£↔completion of

carpentry work on

time

Further contract

more £↔completion of carpentry

work on time

£↔completion of

flats on time

(£ deducted if late)

Figure 3.2