Collier v P & M J Wright (Holdings) Ltd [2007] EWCA Civ 1329 (14 December 2007)

Collier v P & M J Wright (Holdings) Ltd [2007] EWCA Civ 1329 (14 December 2007)

There was no binding agreement to limit liability as there was no consideration for the alleged promise, but Mr Collier raised a genuine triable issue on promissory estoppel, as it is arguable that it would be inequitable for Wrights to enforce the full debt after accepting part payment in reliance on their promise.

Citation
[2007] EWCA Civ 1329
Parties
Appellant: David Anthony Collier; Respondent: P & M. J. Wright (Holdings) Ltd
Jurisdiction
England and Wales
Judgment Date
14 December 2007
Procedural Posture
Appeal From Chancery Division (statutory Demand, Insolvency) / Appeal Judgment on Application to Set Aside Statutory Demand
Outcome
Appeal allowed
Legal Topics
Consideration, Promissory Estoppel, Statutory Demand, Bankruptcy, Joint Debt, Accord and Satisfaction
Contract Law Insolvency Law Consideration Promissory Estoppel Statutory Demand Bankruptcy Joint Debt Accord and Satisfaction

Case Brief

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Parties

David Anthony Collier

Appellant

P & M. J. Wright (Holdings) Ltd

Respondent

Procedural Posture

Appeal From Chancery Division (statutory Demand, Insolvency) / Appeal Judgment on Application to Set Aside Statutory Demand

Legal Issues

  1. 1 Whether an agreement to accept part payment of a joint debt from one debtor is binding and supported by consideration
  2. 2 Whether promissory estoppel can prevent a creditor from enforcing the balance of a debt after accepting part payment

Ratio Decidendi

There was no binding agreement to limit liability as there was no consideration for the alleged promise, but Mr Collier raised a genuine triable issue on promissory estoppel, as it is arguable that it would be inequitable for Wrights to enforce the full debt after accepting part payment in reliance on their promise.

Court Disposition

Appeal allowed

Orders

  • Statutory demand set aside
  • Matter to proceed to substantive hearing on promissory estoppel issue