• Our law of contract is widely seen as deficient in the sense that it is perceived to be hampered by the presence of an unnecessary doctrine of consideration.” Lord Goff in White v Jones (1995).
• Louis lives alone now that his wife has died. His niece, Beatrice, offers to move in and look after him but warns him that her husband, Charles, is worried that by so doing, they will later be unable to afford a house in the rising property market. Louis reassures them that, although his house is mortgaged, if she and Charles pay the mortgage installments, they will own the house on his death. On this basis, Beatrice and Charles move in. Beatrice, at her own expense, redesigns the living room at a cost of £3,000. Louis is delighted and tells her that he will pay her for her excellent work.

He also visits James, to whom Charles owes £4,000, and offers him half the amount to waive the debt. James agrees and Louis pays him £2,000 in cash. Louis also asks Charles, who is a builder, to construct a new garden wall for £5,000. Charles agrees, but after a day tells Louis that, due to the cost of the special bricks he has specified, Charles cannot continue unless Louis pays him an extra £1,000 for the additional cost of materials. Louis agrees.

Louis has recently visited his financial advisor, Pedro, who warns him that Beatrice and Charles are taking advantage of his generosity. Horrified, Louis asks Beatrice and Charles to leave and tells them that they will not receive a penny of his money. To add to their woes, James is now demanding the remaining £2,000 from Charles. Advise the parties.