Foakes V Beer Case Study

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In the case of Foakes v. Beer (1884), Beer obtained a judgement against Foakes for a debt owed and costs in 1875. Over a year later the parties entered into an agreement to the effect that in consideration of Foakes paying Beer $500 in part contentment of the judgement debt and on condition that the balance will be paid by instalments, Beer would not continue on the judgement. In 1882 Beer took proceedings to carry out the judgement so as to recover interest on the judgement debt. It was accepted that the whole debt had now been paid off. The agreement could only be execute if there was consideration. The only present of consideration was the payment of $500 – which was the part of a larger debt already due. The payment of installments could not be consideration unless the payment of $500 was consideration. Part payment of a debt on or after the period of the debt is due is not good consideration for the creditors promise not to demand the balance. Based on Contract Act section 64 – Promisee may dispense with or remit performance of promise. Every promisee may dispense with wholly or in part, the performance of the promise is made to him. It may accept instead of it any satisfaction which he thinks fit. Illustrations (b) – A owes B RM5000. A paid RM2000 to B at the time period, B accepts in satisfaction of the whole debt which the RM5000 were payable. The whole debt is discharged. In the case Kerpa Singh v Bariam Singh[1966] 1 MLJ 38, the appellant being judgment against the respondent for RM8,650. The respondent’s son offered to pay RM4, 000 as payment in completely to discharge his father from liability.The cheque was banked in and the money retained by the appellant’s solicitors. Later, the appellant is about bankruptcy, and... ... middle of paper ... ...ndy an annual rental of RM40, 000 of her dance school which Andy can rent as long as he like. Andy agreed. It is similar toKaruppan Chetty v Suah Thian, the court will held that the requirement of certainty was not met and based on section 30, the agreement become void. Two week before Nina leave for New York, the manager from Lily Ballet School has willing to rent Nina’s dance school for annual rental of Rm100, 000 for five years. Since the agreement between Nina and Andy is void, therefore Nina can enter an agreement with the manager from the Lily ballet school. Conclusion In conclusion, although it had valid offer and valid acceptance between Nina and Andy but the agreement is void due to uncertainty where lie under Contracts Act 1950 Section 30. So, the agreement between Nina and Andy is void; Nina can form an agreement with the manager from Lily ballet school.

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