Re Casey’s Patents [1892] 1 Ch 104

Casey, the defendant, managed some patents owned by the plaintiffs, Stewart and Charlton. The plaintiffs later wrote to the defendant stating “In consideration of your services… we hereby agree to give you one-third share of the patents.” The promise to give Casey shares was in return for work he had already done. The plaintiffs later refused to fulfil their promise arguing that the defendant had not given any consideration to support secure the promise.

Issues:

1. Whether Casey’s past consideration would be good consideration in exchange for the promise.

Holding:

1. Casey’s past consideration was good consideration.

Ratio Decidendi:

That Casey’s work on the patents must have been on the assumption that he would be later compensated. The promise of the plaintiffs was their consideration for the acts done by the defendant in the past.