Anangel Atlas v Ishikawajimi-Harima (No. 2) [1990] 2 LLR 526

• X was a ship builder and following a crisis in the industry, faced several cancellations of orders etc. To try and improve business it offered A price reductions for the work that A had already ordered, in the hope of being able to save deals with similar companies.

• The court found that this deal was valid, applying the Roffey approach, and extended it to say that the opportunity to gain/avoid losing business deals was consideration.

  • NB very great extension since “opportunity” is not a calculable benefit! Furthermore the benefit was not promised nor would necessarily ever be conferred by A, while the source of the desired benefit comes from 3rd parties.

  • CW concludes that consideration after this case is little more than a motive for a promise. 

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