Do you want BuboFlash to help you learning these things? Or do you want to add or correct something? Click here to log in or create user.



#contract #discharge #law
There was a preliminary issue of accord and satisfaction in a case to which reference was made in Chapter 6 on promissory estoppel, namely D & C Builders v Rees [1966] 2 QB 617. In that case, the defendant owed the plaintiffs £482 for work they had done. The defendant's wife telephoned the plaintiffs and said: 'My husband will offer you £300 in settlement. That is all you'll get. It is to be in satisfaction'. The defendant gave the plaintiffs a cheque for £300, asking for a receipt, and insisting on the words, 'in completion of account'. The plaintiffs then brought an action to recover the balance of £182. On a preliminary point whether there was accord and satisfaction, it was held by the county court judge that taking the cheque for £300 did not discharge the debt of £482. The defendant appealed and the Court of Appeal held that there was no accord and satisfaction because the defendant's wife had pressured the plaintiffs to accept the £300 in settlement by threatening that nothing would be paid. As a consequence, there was no true accord and satisfaction and the plaintiffs were entitled to recover the balance. As Danckwerts LJ, stated:

The giving of a cheque of the debtor for a smaller amount than the sum due is very different from "the gift of a horse, hawk, or robe, etc." mentioned in Pinnel's Case. I accept that the cheque of some other person than the debtor, in appropriate circumstances, may be the basis of an accord and satisfaction, but I cannot see how in the year 1965 the debtor's own cheque for a smaller sum can be better than payment of the whole amount of the debt in cash. I agree also that, in the circumstances of the present case, there was no true accord.

If you want to change selection, open document below and click on "Move attachment"

pdf

cannot see any pdfs


Summary

statusnot read reprioritisations
last reprioritisation on suggested re-reading day
started reading on finished reading on

Details



Discussion

Do you want to join discussion? Click here to log in or create user.