Court case(1875) LR 10 Ex 153

Misa bought bills of exchange from a firm, Lizardi and Co., and in payment gave a cheque drawn in favour of Currie's bank, to which Lizardi was indebted. Lizardi failed before the cheque was paid and Misa stopped payment. The bank sued Misa on the cheque. Misa argued that the bank, having taken the cheque in respect of an existing debt owed to it by Lizardi, had given no consideration and could not sue.

The Exchequer Chamber held for the bank: an existing debt is good consideration for a negotiable instrument given on account of it. In the course of the judgment Lush J gave the definition since quoted in every textbook: 'A valuable consideration, in the sense of the law, may consist either in some right, interest, profit or benefit accruing to the one party, or some forbearance, detriment, loss or responsibility given, suffered or undertaken by the other.' The decision was affirmed in the House of Lords.