Business Law Project

1 The Rule in Pinnel 's Case

A contract is an agreement made between two or more parties which the laws will enforce . According to Salmond a contract is an agreement creating and defining obligation between the parties .an agreements includes every promises and every set of promises forming consideration for each other . The essence of the agreement is the meeting of the minds of the parties in full and final agreement , i .e there must consesus ad idem . Hence , it can be seen that the parties to the agreement must

have agreed about the subject matter of the agreement in the same sense and at same time .This , subect on which the parties made their agreement is termed as consideration in a contract Consideration is one of eth essential elements to suppoert a contract .A considertion can be defined as the price for which the promise of the other is brought and the promise thus given for value is enforceable (Pollock , 1906 (1

In Currie Vs Misa (2 ) court the court laid down that a consideartion is in the sense of law may consist either in some right ,interest ,profit or benefit accruing to one party or some forebearance detriment , loss or responisibility given . However , the doctrine of part payment or Rule of lesser sum , which was applied in Pinnel 's case , has fetched a number of critical arguments regarding the scope of consideration . Before analysing the decision and the rules in Pinnel 's case , we shall scrutize the...