Variation of contracts, part-payment and promissory estoppel

Question 1

What is variation of contracts?

Answer 1

Changes to obligations or terms after the original contractual agreement

Question 2

What must a variation be to be enforceable?

Answer 2

Supported by consideration from the other party

Question 3

Williams v Roffey Bros 1990

Answer 3

The promise of extra payment is binding on the promisor if the promisor receives a practical benefit and no duress was applied

Question 3

The promise of extra payment is binding on the promisor if the promisor receives a practical benefit and no duress was applied

Answer 3

Williams v Roffey Bros 1990

Question 4

Part payment of a debt on the date on which it is due can never be satisfaction for the full amount owed

Answer 4

Pinnel’s case 1602

Question 5

Pinnel’s case 1602

Answer 5

Part payment of a debt on the date on which it is due can never be satisfaction for the full amount owed

Question 6

What are the exceptions to Pinnel’s case 1602?

Answer 6

• Early part payment on the request of the creditor (a form of consideration)
• Provision of goods or services instead of money
• Payment on the due date but at a different location to that specified in the contract
• Something additional offered will be consideration if acceptable to the creditor

Question 7

Why is payment on the due date but at a different location to that specified in the contract an exception?

Answer 7

Attending a different location is consideration- may take extra time or/and effort to get there

Question 8

page 6 of lecture 9