Foakes v Beer (1884) App Cas 605

House of Lords

Basic Facts: B (Beer) obtained a court judgment against F (Foakes) for £2,090, with interest accruing until payment. F requested time, and B agreed to accept £350 immediately and £150 bi-annually, for which B promised not to take further proceedings. F completed the payments but B sued for interest, claiming it was due despite the agreement.

Issue for the Court: Can a promise to accept a lesser sum in satisfaction of a greater amount be supported without further consideration?

Held : The court ruled that a promise to accept less without further consideration is unenforceable, as a lesser sum cannot legally satisfy a greater debt without additional consideration.

• Earl of Selbourne LC highlighted that no consideration was provided for the promise to forego interest, and thus it could not be enforced.

• Lord Blackburn explained that collateral or additional consideration is required to discharge a larger debt legally.

💡Leveluplaw : This case established that to enforce a promise to accept less than owed, additional consideration is needed, reinforcing the doctrine of consideration in contract law.