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Chapter 2

The part payment problem (waiver of an existing debt)

Payment of a lesser sum in satisfaction of a greater sum cannot be any
satisfaction for the whole sum.

This is an extension to the rule that performing an existing contractual
promise cannot be consideration for a further contract with the
promisor.

Illustration 13 – Consideration

FOAKES v BEER 1884

Facts:

Foakes obtained judgment against Beer for a sum of £2,090 plus interest. She
agreed to payment by instalments and that further proceedings on the judgment
would not be taken. B paid the £2,090 but refused to pay the interest and F
sued.

Held:

B had to pay the interest. Payment of the debt itself was not consideration for
the whole amount owed which included the interest.

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