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hi i’m a bit confused over this case
in the notes, it says that settlement before the due date can be taken to be full settlement.
so how come when the builders accepted £2,400 cash instead of £3,200 cheque from Mrs Rees in 30 days time, they were able to successfully sue her in court for the remaining £800?
If anyone can clear it up for me, it would be very much appreciated.
Thanks in advance
Yifan
I believe the “settlement before the due date” brings good discharge when it’s the creditor who asks for early settlement. Otherwise, when you owe someone money payable in, say, two days’ time and you pay a smaller amount, to apply the rule would mean that you are taking a cash discount which wasn’t available to be taken.
Due to the fact that the Claimants were in financial difficulty, the defendants took advantage and compelled them to accept less of what was really owed to them.
In order to apply the principle the agreement must be voluntary by both parties.
Promissory estoppel must be voluntary.
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