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” If X owes Y $100 but Y agrees to accept a lesser sum, say $80, in full settlement of Y’s claim, there is a promise by Y to waive their entitlement to the balance of $20. The promise, like any other, should be supported by consideration.”
What consideration would this promise be supported by?
Some alternative undertaking or promise given by X to Y in exchange for Y waiving all further rights to the remaining $20 debt
Something of value – could be a tooth-brush or maybe a car. Could be anything – of value
They could
But then, some time later, they could come back to X and say “You still owe me $20
And there’s nothing that X could do except to show the court (if it got to court) that X HAD given something to Y – maybe X had paid the $80 one day before the agreed payment date
But what about promissory estoppel? Isn’t this what it prevents? But I’m assuming X would need proof of this promise?
For promissory estoppel to work it must be shown that not only was a promise given and received but also that the promisor fully expected the promissee to act upon the basis of that promise and that the promissee did, in fact, act on the basis of the promise
And you’re right – how do you prove such a promise?
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