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Raggow v Scougall, [1915] 31 TLR 564


P and D had contract for employment with fixed salary. War broke out. Employees agreed to take less/After was P would return to previous contract


Is their consideration for P to accept less money for the same job?


When two parties to a contract mutually agree to rescind it, and enter a new contract, consideration consists of both parties giving up their rights under the old contract.


The parties had torn up the old one and made a new mutual agreement. Objectively look to see if they had intention to tear up old contract. They mutually consented to the new contract and new terms of that contract


P in wrong, cannot recover on old contract


Both parties give something up they are entitled to = consideration.
It is not a variation under the contract, the old contract is gone, and a new one made.

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