Consideration - Pre-existing Duties and Part Payment of Debts Essay

Consideration - Pre-existing Duties and Part Payment of Debts - Essay Example The facts of the case were that a borrower, Cole, owed Pinnel [the lender] the equivalent of  £8.50 [ £8-10s-0d] which was to be repaid on 11 November. At the lender’s request, the borrower paid  £5.11 [ £5-2s-2d] on 1 October, which the lender claimed to accept in full settlement of the debt.    The lender then successfully sued the borrower for the outstanding amount.   The House of Lords held that since no consideration was exchanged to enforce the promise of the lender to accept part-payment of a debt on the due date from the borrower, then the lender could pursue full payment of the debt at a later date. This remains the general rule at common law.   However, in Pinnel’s Case, it was also said that the agreement to accept part payment would have bound the lender if fresh consideration had been provided to show accord and satisfaction.   This might be: The facts of the case were that a borrower, Cole, owed Pinnel [the lender] the equivalent of  £8. 50 which was to be repaid on 11 November. At the lender’s request, the borrower paid  £5.11 [ £5-2s-2d] on 1 October, which the lender claimed to accept in full settlement of the debt.    The lender then successfully sued the borrower for the outstanding amount.   The House of Lords held that since no consideration was exchanged to enforce the promise of the lender to accept part-payment of a debt on the due date from the borrower, then the lender could pursue full payment of the debt at a later date.