A contract is an agreement that the law will enforce, a promise (or set of promises) that the courts will enforce, a legally enforceable contract . Many problems arise that require the examination of whether a contract exists. To resolve this, a useful formula is Offer + Acceptance = Agreement, and Agreement + Intention + Consideration = Contract. Consideration is defined by Sir Frederick Pollock as ' an act or forbearance of the one party, or the promise thereof, which is the price for which the promise of the other is bought, and the promise thus given for value is enforceable'. The process outlined forms the vast majority of contracts. An offer is made by party A to party B; that offer (or some negotiated variation of it) is accepted by party B. Therefore an agreement exists. All of those components are necessary for a contract to exist. The type of contract that will be examined in this essay is one that is made between a Creditor (the party that lends out the money to the Debtor) and a Debtor (the party who borrows the money from the Creditor) It will also be examined how The Rule in Pinnel's Case was an unfair rule and how the problem arising from the Rule in Pinnel's Case was solved.
The Rule in Pinnel's Case states that payment of less than you owe will not totally discharge your debt obligation, this is because the creditor's promise (not to sue for the balance) is a promise made without
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