Collier v Wright [2007]

Facts

  • The claimant owed a debt of ~£46,000 to the defendant
  • The defendant promised that the claimant, and 2 other property developers, could each take responsibility for 1/3 of the debt
  • Having paid off his 1/3 share, the other 2 developers had declared bankruptcy
  • The defendant attempted to claim the remaining 2/3 from the claimant

Issue

  • Could the claimant hold the agreement to be binding to prevent having to pay the remaining 2/3 share

Decision

  • Yes, claim allowed

Reasoning

  • The rule in Foakes v Beer [1884] applied, whereby the part payment of a debt is not satisfaction for the whole with regards to consideration
  • However, estoppel prevented the defendant from revoking his promise
RELATED CASE  Kendal & Sons v Lillico & Sons [1969]

Posted in Contract Law Revision Notes.

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