KEY CASES PART-PAYMENT OF DEBT

Pinnel’s Case (1602)

Facts: Creditor accepted part‑payment early but later sued for full amount.

Principle: Part‑payment of a debt is not good consideration for discharging the whole. Importance: Foundational rule.

Foakes v Beer (1884)

Facts: Creditor agreed not to enforce interest if debtor paid instalments.

Principle: Reaffirmed Pinnel’s Case — part‑payment cannot discharge full debt. Importance: Still binding authority

Re Selectmove (1993)

Facts: Company sought to rely on Williams v Roffey to argue practical benefit in debt repayment.

Principle: Practical benefit does NOT apply to part‑payment of debt (Foakes v Beer prevails). Importance: Limits Roffey

Rock Advertising v MWB (2018)

Facts: Oral agreement to reschedule licence fee payments.

Principle: Court suggested (obiter) that practical benefit MAY apply to part‑payment cases, but did not overrule Foakes v Beer. Importance: Creates uncertainty; exam gold

Collier v P & MJ Wright 2007

Facts: Creditor agreed to accept one partner’s share of a joint debt.

Principle: Promissory estoppel may extinguish debt if debtor relied on promise and it would be inequitable to go back. Importance: Softens Foakes v Beer in exceptional cases.