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This case (Chappell and Co Ltd v Nestlé [1960] AC 87 House of lords) demonstrates that the consideration (see: Consideration) in a contract (see: Contract) may be very, very close to non-existent at yet still be sufficient to uphold the agreement. Nestle offered a record to customers who sent a certain number of chocolate bar wrappers. Although the wrappers were simply thrown away, it was sufficient consideration to support the agreement.

1. Offer <ref>http://www.lawstudentforum.co.uk/showthread.php/2642-Chappell-and-Co-v-Nestle-1960?p=9587#post9587</ref> The word offer when used in a spoken or written speech by any person carries two possible meanings - a legal offer or an invitation. The question we need to answer is whether the statement of offer refers to in that speech is " an unequivocal intention to be legally bound" and we need to analyze objectively what effect it has within the context of ordinary business usage. If it resulted in more contracts than stock,for example, the court will protect the "offeror", will rule that no legal offer has taken place. Being morally bound carries no weight. (but see promissory estoppel and Trust exceptions)

2. Promisor and promisee <ref>http://www.lawstudentforum.co.uk/showthread.php/2642-Chappell-and-Co-v-Nestle-1960?p=9587#post9587</ref> A promisee is like a hole in a doughtnut, it cannot exist on its own since by definition he is "the person to whom the promise is made". Someone must make the promise first and he is the promisor. A promisor is simply someone who makes a promise in order to receive a benefit, he must however provide a consideration before a court will help him enforce the benefit he has bargained for.

3. Offer and acceptance, Promisor and Promisee, consideration <ref>http://www.lawstudentforum.co.uk/showthread.php/2642-Chappell-and-Co-v-Nestle-1960?p=9587#post9587</ref> Similarly, there cannot be acceptance without an offer. It is therefore very critical to analyze if an offer has taken place (or a promise to be bound has taken place). An offer as a promise to be bound is only legally valid if it carries with it consideration in English law.

4. Unilateral Offer <ref>http://www.lawstudentforum.co.uk/showthread.php/2642-Chappell-and-Co-v-Nestle-1960?p=9587#post9587</ref>

Unilateral Offer is an exception to all the above, so it has its own rules about how such an offer may be accepted or if the idea of a promisee is relevant at all (arguable) since a unilateral offer is valid even if addressed to the whole world.

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