Consideration in contractWatch
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?
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.