What is the effect of promissory estoppel on part payment of debts?
The mere payment of part of a debt indisputably due to the creditor cannot possibly be an act of reliance by itself. Something more must be found. So promissory estoppel cannot extinguish a debt through mere part payment.
What is part payment of a debt?
It can be said that part payment of a debt is a benefit to the creditor rather than no payment at all. It can also be applied to a case where part payment has been made earlier than initially required. This would give no protection to a creditor if he wished to bring his case to court.
Which case applied the principle of part payment of a debt?
Pinnel’s Case
Pinnel’s Case [1602] 5 Co. Rep. 117a, also known as Penny v Cole, is an important case in English contract law, on the doctrine of part performance. In it, Sir Edward Coke opined that a part payment of a debt could not extinguish the obligation to pay the whole.
Is part payment of debt good consideration?
The general rule is that part-payment of a debt is never good consideration to discharge that debt. Pinnel’s case also ruled there are two exceptions to the part-payment rule. Exception: Part-payment of a debt is valid if something else is exchange along with/instead of money.
How do I apply for promissory estoppel?
Promissory Estoppel
- The defendant made a clear and unambiguous promise.
- The plaintiff acted in reliance on the defendant’s promise.
- The plaintiff’s reliance was reasonable and foreseeable.
- The plaintiff suffered an injury due to reliance on the defendant’s promise.
What are the three elements of promissory estoppel?
The elements of a promissory estoppel claim are “(1) a promise clear and unambiguous in its terms; (2) reliance by the party to whom the promise is made; (3) [the] reliance must be both reasonable and foreseeable; and (4) the party asserting the estoppel must be injured by his reliance.” (US Ecology, Inc. v.
What is the meaning of part payment?
Meaning of part payment in English a payment that is less than the whole amount owed: part payment for sth The company received 500,000 shares as part payment for the sale of its transport division.
What is the common law rule on part payment of a debt?
A debtor cannot give consideration for the settlement by paying part of a debt, which is no more than it is already bound to do. But if someone else, who is not already bound to pay, agrees to pay even part of the debt, that would be good consideration for releasing the debtor from the debt.