miles.harmsworth
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Report Thread starter 7 years ago
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I am trying to get my head around this:

A owes B £1000 in 10 monthly instalments of £100
B has come into financial difficulty and A reduced the amount so B only has to pay 5 instalments of £100.
After paying 5th and last instalment, B wins the lottery.

Can A claim to get the remaining £500 from the total of the original £1000 owed.

My answer: no as promissory estoppel can not be used as to bring action only to defend against it.

Am i right?
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A is not using estoppel as a cause of action in that scenario. He is bringing an action in debt for the original sum.
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miles.harmsworth
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(Original post by Forum User)
A is not using estoppel as a cause of action in that scenario. He is bringing an action in debt for the original sum.
yeah, but is he allowed to do that, he has already agreed for part payment to satisfy the full debt?
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(Original post by miles.harmsworth)
yeah, but is he allowed to do that, he has already agreed for part payment to satisfy the full debt?
Read Foakes v Beer and re Selectmove Ltd and you will have your answer
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jool
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(Original post by Forum User)
Read Foakes v Beer and re Selectmove Ltd and you will have your answer

What FU said, Foakes v Beer essentially says that part payment of a debt is never good satisfaction for the whole amount, unless some other consideration is provided - i.e. making payment earlier, making payment at a different location or providing a service. Referring to the earlier Pinnel's Case, 'the gift of a horse, hawk, or robe, in satisfaction is good.'

However, you may be able to state that B could possibly use promissory estoppel to estop A recovering the full amount - see Collier v P&MJ Wright.
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