Moral Obligation

Question 1

Is a new promise by a debtor to pay his debt that is barred by the statute of limitations binding?

Answer 1

A new promise by the debtor to pay his debt, whether then barred by the applicable statute of limitations period or not, binds the debtor for a new limitations
period.

○ The promise may be express or implied
○ If it is express it may conditional or unconditional -- if conditional, it is not effective until the condition is performed
○ The promise is implied if:
§ The debtor expressly acknowledges the debt OR
§ The debtor makes a part payment of the debt However, these two are only prima facie evidence

Question 2

What does the Restatement Second 82(1) say about moral obligation?

Answer 2

• A promise to pay all or part of an antecedent contractual or quasi-contractual indebtedness owed by the promisor is binding if the indebtedness is still enforceable or would be except for the effect of a statute of limitations
• The promise to pay includes the following (unless other facts indicate a different intention):
  ○ A voluntary acknowledgement to the obligor, admitting the present existence of the antecedent indebtedness OR
  ○ A voluntary transfer of money . . . or other thing . . . as interest on or part payment of or collateral security for the antecedent indebtedness OR
  ○ A statement to the obligee that the statute of limitations will not be pleaded as a defense

Question 3

What are some examples when a promise to pay a preexisting obligation may be enforceable?

Answer 3

Debts barred by the statue of limitations, debts incurred by infants, debts of bankrupts.

There was originally a quid pro quo and according to the principles of natural justice the party receiving ought to pay, but the legislature has said he shall not be coerced

Question 4

What does Restatement Second (86) say about a promise to pay a preexisting obligation?

Answer 4

• A promise made in recognition of a benefit previously received by the promisor from the promisee is binding to the extent necessary to prevent injustice
• A promise is not binding if the promisee conferred the benefit as a gift, or if the promisor has not been unjustly enriched or to the extent that the value is disproportionate to the benefit

Question 5

Can a promisor be held liable for a promise to pay after care has been received?

Answer 5

Where the promisee cares for, improves, and preserves the property of the promisor, though done without his request, it is sufficient consideration for the promisor’s subsequent agreement to pay for the service because of the material benefit received