levo

Contract: Formation

Payment of less than the debt, and promissory estoppel

  • 3 things to know
  • A2 Units 3 and 4

Overview

Hardship that the rule on part payment can cause and promissory estoppel.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Is the effect of promissory estoppel to suspend or to extinguish the promisor's rights?

Key term

State the rule in Pinnel's Case (1602).

Key term

What three exceptions to the rule in Pinnel's Case were recognised at common law?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    State the rule in Pinnel's Case (1602).

    Model answer

    Payment of a smaller sum on the due date cannot discharge an obligation to pay a larger sum, so a creditor who accepts part payment may still sue for the balance.

  2. 2

    What three exceptions to the rule in Pinnel's Case were recognised at common law?

    Model answer

    The debt is discharged where the smaller sum is paid earlier than the due date, where it is paid at a different place at the creditor's request, or where the creditor accepts a chattel instead of money.

  3. 3

    What did Foakes v Beer (1884) settle about part payment of a debt?

    Model answer

    The House of Lords confirmed the rule in Pinnel's Case, holding that Mrs Beer could still claim the interest on the judgment debt even though she had agreed to accept payment of the principal by instalments.

  4. 4

    Explain the hardship that the rule on part payment can cause.

    Model answer

    A creditor who has freely agreed to take less, and has been paid on that basis, may nonetheless go back on the agreement and sue for the balance, which penalises the debtor for relying on the creditor's word.

  5. 5

    Why did Re Selectmove (1995) refuse to apply the reasoning of Williams v Roffey Bros to a debt?

    Model answer

    The Court of Appeal held that extending the practical benefit approach to part payment of a debt would contradict the binding House of Lords decision in Foakes v Beer, so only Parliament or the highest court could make that change.

  6. 6

    What was the position on part payment left by MWB Business Exchange Centres v Rock Advertising (2018)?

    Model answer

    The Supreme Court decided the appeal on the effectiveness of the clause requiring variations to be in writing and expressly declined to reconsider the rule in Foakes v Beer, so that rule remains the law.

Other ways to work this

The same content, four other ways.

What is inside Levo

Six ways to work the same material.

1Closed book
2Open book
3Closed book

The 3-step method, run for you

Answer cold, learn it, then prove it stuck. Levo tracks the jump between your first attempt and your last.

Law Making in Wales and the UK
Delegated Legislation
Statutory Interpretation
Judicial Precedent

Cram a whole paper in one sitting

Sort every topic into what you know and what you do not, then drill only the weak ones.

Roles v Nathan ( ).
196319411945

Blank Blitz makes facts automatic

Rapid timed gap-fills on the terms and numbers you need to recall without thinking.

AThe defendant owed the victim a duty of care and breached it.
BThe breach carried a reasonably foreseeable risk of death.
CThe breach caused the death.

Build It gets the exam shape right

Assemble a full-mark answer from its marking points, in the order an examiner wants them.

Pecuniary loss is financial and measurable.
TrueFalse

Test It catches misconceptions

Spot the fault in a statement. The traps are the mistakes students actually make.

721941163128510

Brain Breaks between sessions

Short focus games to reset attention, so the next set lands better than the last.

Every question in Contract: Formation, on a schedule.

Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.

Or £46 a year, about £3.83 a month. Cancel anytime.