ACTSC371 Lecture Notes - Lecture 7: Trade Secret, Metropolitan Railway, Estoppel
4 Jan 2016
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Document Summary
Uw enters into a contract with a construction company to build a new library (ellis. Contract already exists, it is supposed to be finished within the 2 years. Gratuitous reduction of a debt in foakes v. beer. Foakes is a creditor, lent money to beer (debtor) with interest (all the contract elements exist) Beer, at some point during the contract, asks foakes to reduce the debt and he repays the remaining balance on the principal. Beer pays and then sues beer for the interest and the case goes to court. The court agreed with foakes, since there is no consideration, the original contract is still in place and therefore foakes can sue beer for the interest. Strict application of the principle of contract law. No, since the creditor would have to declare bankruptcy otherwise. Other courts had to follow the precedent, but the courts realized that this did not make good business sense.
