Mahkamah Persekutuan dalam kes Ban Hong Joo Mines Ltd v Chen & Yap Ltd [1969] 2 MLJ 83 telah merujuk keputusan House of Lords dalam kes Mersey Steel & Iron Co Ltd v Naylor, Benzon & Co (1884) 9 App Cas 434; [1881–5] All ER Rep 365, di mana Lord Blackburn menjelaskan seperti yang berikut – “The rule of law, as I always understood it, is that where there is a contract in which there are two parties, each side having to do something, if you see that the failure to perform part of it goes to the root of the contract, goes to the foundation of the whole, it is a good defence to say, 'I am not going on to perform the substantial consideration on my part of it which is the root of the whole and the substantial consideration is defeated by your misconduct”.