Callisher V Bischoffsheim
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''Callisher v Bischoffsheim'' (1869–70) LR 5 QB 449 is an
English contract law English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...
case concerning consideration. It held that the compromise of a disputed claim made ''
bonâ fide In human interactions, good faith ( la, bona fides) is a sincere intention to be fair, open, and honest, regardless of the outcome of the interaction. Some Latin phrases have lost their literal meaning over centuries, but that is not the case ...
'' is a good consideration for a promise, even if it ultimately appears that the claim was wholly unfounded.


Facts

Callisher alleged that money was owed to him from the Government of
Honduras Honduras, officially the Republic of Honduras, is a country in Central America. The republic of Honduras is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Oce ...
, and was about to take proceedings to enforce payment. In consideration that the plaintiff would forbear taking such proceedings for an agreed time, the defendant promised to deliver to Callisher a set of Honduras Railway Loan Bonds. But then, they did not deliver the debentures, and argued that their promise to do so was unenforceable because the original suit was groundless.


Judgment

The Queen's Bench held the contract was enforceable because even if the suit was groundless, forbearing to sue could count as a valuable consideration. Lord Chief Justice Cockburn said the following. Blackburn J concurred. Lush J and Mellor J stated their concurrence. New Zealand case law, ''
Couch v Branch Investments (1969) Ltd Couch v Branch Investments (1969) Limited 9802 NZLR 314 is an often cited case regarding the temporary forbearance of taking legal action on enforcing a debt as being consideration to enter into a new contract with the creditor. It reinforces t ...
'', cites this case.


See also

*
English contract law English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the industrial revolution, it shares a heritage with countries ...


Notes

{{reflist English contract case law 1870 in British law 1870 in case law Court of King's Bench (England) cases