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Alaska Packers’ Association v. Domenico

Law Dictionary

Law Dictionary

Featuring Black's Law Dictionary 2nd Ed.
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Contracts Keyed to Murphy

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Bloomberg Law

Citation. 22 Ill.117 F. 99 (9th Cir. 1902)

Brief Fact Summary. Sailors who agreed to work for company refused to adhere to the original contractual terms and demanded increased compensation. The company’s representative agreed to the higher compensation in a new contract.

Synopsis of Rule of Law. There can be no consideration for a modified contract that arises from a coerced promise for increased compensation for performing what one is already obligated to perform.

Facts. Sailors agreed to work in Alaska for a set sum. Once the workers arrived at the job they demanded higher wages for the same work from the company’s representative. The representative claimed that he had no authority to alter the contract. However, because the company was in a situation where it was impossible to bring in other workers, he agreed to the change the compensation. Later the company refused to pay the higher wages.

Issue. Is there consideration when one party refuses to uphold the terms of the contract to the detriment of the other party?
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