Foakes v. Beer Case Brief Summary | Law Case Explained

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Foakes v. Beer | (1884) 9 App. Cas. 605

One key requirement for contract formation is consideration, or the bargained-for exchange of promises or performances. But what if a person promises to do something that he or she is already legally obligated to do? In Foakes versus Beer, we explore the preexisting-duty rule.

Julia Beer secured a judgment against John Foakes for approximately two thousand pounds plus interest. Foakes asked Beer to allow him to pay over time. The parties executed an unsealed agreement whereby Foakes agreed to pay five hundred pounds immediately, and Beer agreed not to pursue legal enforcement of the judgment if Foakes made twice-yearly payments until two thousand pounds was paid in full. The agreement didn’t expressly refer to the interest awarded in the judgment.

After Foakes paid two thousand pounds in accordance with the agreement, Beer filed suit against him to recover interest. In response, Foakes argued that the parties’ agreement was an enforceable contract that precluded Beer from seeking legal enforcement of the original judgment, including the associated interest. Beer argued, among other things, that the agreement wasn’t enforceable for lack of consideration because Foakes didn’t take on any new obligations.

The trial court ruled in favor of Foakes, holding that the parties had an enforceable contract. The Court of Appeal reversed, finding the agreement unenforceable for lack of consideration. Foakes appealed to the House of Lords.

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