What is the ratio in Foakes v Beer?

An agreement to accept part payment of a debt in full satisfaction is not binding without fresh consideration. Payment of a smaller sum cannot discharge a larger debt.

What did the court decide in Foakes v Beer?

The House of Lords decided in favor of Mrs Beer, ruling that she could claim interest despite agreeing not to, as the agreement lacked consideration.

Why is Foakes v Beer important for contract law?

It reinforced the strict approach to consideration doctrine and established important precedent for debt settlement agreements, though it has been modified by promissory estoppel.

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