Legal Dictionary of Pakistan

total failure of consideration

A situation in which the contract is indivisible so that a complete lack of consideration voids the contract. "The concept of total failure of consideration is a somewhat technical one. In particular there may be a total failure of consideration even though the defendant has actually done some work or expended some money in the performance of the contract, provided that what he has done has not enured to the benefit of the other party. For example, if a person orders machinery to be specially constructed for him, there will be a total failure of consideration if none of the machinery is delivered to him although work may have been commenced and money expended on it. On the other hand, if some benefit has been received under the contract, no matter how trifling, there is no total failure of consideration. In this case, just as there is generally no right to part payment for part performance, so also there is generally no right to part recovery for partial failure of consideration." P.S. Atiyah, An Introduction to the Law of Contract 306-07 (3d ed. 1981).