Dunlop sold goods to Dew on the condition that Dew wouldn’t sue below the list price and would ensure that anyone to whom they sold the goods would not sell below the list price. S bought from Dew and sold below the list price, but the court refused Dunlop an injunction against S since (1) Dunlop was not a party to the agreement between S and Dew, and so couldn’t impose or enforce terms on their agreement, and (2) Dunlop had not given consideration in return for S’s promise as to selling price.
Viscount Haldane: There are certain fundamental principles of contract law: “only a person who is a party to a contract can sue on it” and consideration is another.
Lord Atkinson: in the absence of consideration, this is a nudum pactum
