Whether There Is a Valid Consideration When Tom and Crew Worked Overtime?

Issue 1: Whether there is a valid consideration when Tom and crew worked overtime?

Definition of consideration

Section 2 (d): When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.

Executory consideration: Consideration is executory when there is an exchange of promise to perform acts in future. Each promise is a consideration for the other, and the contract is effective as soon as the promises are exchanged. Examples include mutual promises such as a promise to work for a promise of commission in return for successfully selling a house.

Relevant case law:

Stilk v. Myrick (1809)

Fact: In this case the crewmen of a ship were contracted to sail a vessel, but during the voyage two crew members deserted the ship. As the result, the captain promised that he would distribute the wage of the men who had deserted among the remaining crew if they sailed the ship back home. However, the captain refused to pay the additional payment.

Held; the court held that the promise of extra payment was not enforceable as the crew had provided no consideration to support the promise. By sailing the ship back home the crew had done no more than was already required of them as part of their existing contractual duties.

Hartley v. Ponsonby (1857)

Fact; Similar with the case of Stilk v. Myrick (1809), in Hartley, the captain again promised additional payment if the crew sailed the ship back.

Held; But in this case, the court held that the crewmen by sailing the ship back