LAWS 3003 Lecture Notes - Lecture 6: Oral Contract, Contract
Document Summary
Pinel rule: a partial payment cannot satisfy a debt. Part payment of a debt: can accept the partial payment but can come back and ask for the rest. Public policy argument = it would encourage fraud. : composition agreement: provide that each creditor will get a certain cent per dollar. All the creditors will be paid at the same rate according to what the person actually net monetary value. Courts will enforce this based on two grounds: an economic benefit to get something rather than nothing, supreme court decision (teacher views it as being wrong): 1963 scc decision. Court agreed that the payment of a smaller sum by cheque was fine. Accepting payments by virtue of cheque. (teacher) wrong: cant see where the extra consideration is. Pao on v. lau yiu long (bp 180) 2 . guaranteed the value of the share: guarantee that the shares value would not decrease with the transfer.
