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Foakes V. Beer

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FOAKES V. BEER
CASE BRIEF

STYLE OF CAUSE

Foakes v. Beer (1884), 9 App. Cas. 605.

PROCEDURAL HISTORY

Appeal

This appeal is about the interest owed to Mrs. Beer (Beer) from Mr. Foakes (Foakes). In the original case, Foakes was required to pay Beer the money that he owed her. To do this, they came to an agreement that Foakes could make instalments so he would not bankrupt himself. After the final payment was received, Beer sued Foakes for the interest owed on the original sum. The new case was decided in favour of Foakes, but was appealed by Beer in the Court of Appeals.

FACTS

Mrs. Beer (Beer) had sued Dr. Foakes (Foakes) for £2,090 and recovered judgement. Foakes and Beer entered into a written agreement where Foakes was to pay £500 immediately and the balance over a course of 5 years until the debt was cleared. Foakes asked to pay the rest in bi-yearly payments because of financial difficulty. Beer made a promise of taking no future action if Foakes paid the rest of the money on a timely basis. After Foakes had paid the full amount, Beer took action against Foakes for interest on the funds. Interest had not been mentioned in the agreement they had signed.

In the agreement, it talked about the payments but not the interest that she was expecting since Beer was under the impression that interest did not have to be mentioned. It was not written anywhere that she did not want the interest. The agreement was not under seal.

After the last payment was made, Beer gave no indication of acquittance for the interest. Beer claimed that Foakes had offered no consideration and claimed her due.

ISSUE(S)

Would an agreement not under seal be enforceable when the respondent (Beer) has not received any consideration (meaning the compensation for making the agreement)?

DECISION

No, unless the respondent has received

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