Rules of consideration: Part payment of debt does not end liability for the full amount- cards checked

Question 1

Which cases establish that part- payment of debt does not end liability for the full amount?

Answer 1

-Pinnels case
-Foakes V Beer.

Question 2

What are the exceptions of part- payment of debt does not end liability for the full amount?

Answer 2

1- Promissory Estoppel
2- Voluntary comprimise

Question 3

What cases outline the exceptions of part- payment of debt?

Answer 3

-Central London V High tree house
-Re Selectmove
-D & C builders V Rees

Question 4

When can a contract be modified?

Answer 4

-if a contract has been carried out by neither party
…a new promise will replace the old contract.

Question 5

Pinnels case?

Answer 5

-Agreeing to instalments/ part payment of debt is not consideration.
-debtor already obliged to pay in full and therefore is just performing an existing duty.
-not bound by any promises of part payment.

Question 6

Foakes V Beer?

Answer 6

-entitled to interest (after agreement to pay rest of court judgement in instalments after lump sum).

Question 7

What is the second exception for Pinnels rule regarding part-payment of debt not being good consideration?

Answer 7

-if parties voluntarily agree to pay part of the debt via a compromise, there will be consideration.
-can be paid off with something that might not be equal in value (car)

Question 8

What is the first exception for Pinnels rule regarding part-payment of debt not being good consideration?

Answer 8

-Promissory Estople.

Question 9

What is meant by a promissory Estople?

Answer 9

-If party A promises to vary the contract and other party B relies on that promise then A should be stopped from going back on that promise.

Question 10

Central London PT V High Tree house decision?

Answer 10

-had they sought to recover the money which represented the whole rent for the time of the war- would have been estopped.
-Because landlord relied upon promise.

Question 11

Re Selectmove?

Answer 11

-both parties agreed paying in instalments
-promise without consideration because purely Selectmove benefit
-so did not have to pay in instalments when full amount demanded- not PE as they were not paying on time.

Question 12

D & C builders V Rees?

Answer 12

-if a party is pressurised into accepting a lesser amount than what they are owed…
-courts will allow claim for the full amount.