Pinnel's Case
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''Pinnel's Case'' (1602) 5 Co Rep 117a, 77 ER 237, also known as ''Pinnel v Cole'', is an important case in English
contract law A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more Party (law), parties. A contract typically involves consent to transfer of goods, Service (economics), services, money, or pr ...
, on the doctrine of part performance.
Sir Edward Coke Sir Edward Coke ( , formerly ; 1 February 1552 – 3 September 1634) was an English barrister, judge, and politician. He is often considered the greatest jurist of the Elizabethan and Jacobean eras. Born into an upper-class family, Coke was ...
reported the case. The case is authority for the proposition a part payment of a debt could not extinguish the obligation to pay the whole.


Facts

Pinnel sued Cole, in an action of debt upon a bond, for the sum of £8 10s. The defendant, Cole, argued he had, at Pinnel's request, tendered £5 2s 2d before the debt was due, and the plaintiff had accepted in full satisfaction for the debt.


Judgment

The case reports the judgment as follows. ''Pinnel's case'' was applied by '' Foakes v Beer'' 884ref name=Foakes> and ''Jorden v Money'' 854


Commentary

''Pinnel's case'' concerned the doctrine of Accord and satisfaction, rather than
Consideration Consideration is a concept of English law, English common law and is a necessity for simple contracts but not for special contracts (contracts by deed). The concept has been adopted by other common law jurisdictions. It is commonly referred to a ...
. The judgement makes no reference to consideration; this may be because the action of assumpsit (for which consideration in the absence of a deed was required) was distinct from an action for debt until
Slade's Case Slade's Case (or ''Slade v. Morley'') was a case in English contract law that ran from 1596 to 1602. Under the medieval common law, claims seeking the repayment of a debt or other matters could only be pursued through a writ of debt in the Co ...
. In ''Bagge v Slade'', Coke LCJ (the reporter of ''Pinnel's case'') held that
'...if a man be bound to another by a bill in 1000l and he pays unto him 500l in discharge of this bill, the which he accepts of accordingly, and doth upon this assume and promise to deliver up unto him his said bill of 1000l, this 500l is no satisfaction of the 1000l but yet this is good and sufficient to make a good promise, and upon a good consideration, because he hath paid mony,(s) five hundred pound, and he hath no remedy for this again.'
Thus, ''Bagge v Slade'' was authority for the proposition that part payment of debt can be good consideration for the discharge of that debt. Similarly, in ''Rawlins v Lockey'', it was said that '30l can be no satisfaction of 60l yet to have the money in his hands without suit is a good consideration to maintain this action upon the promise'. This distinction was maintained until Lord Ellenborough's judgment in ''Fitch v Sutton'' in which he held that part payment of a debt cannot be consideration. This conflation has been met with academic and judicial criticism.


Exceptions to the Rule

The case law has evolved over the years to create a number of exceptions to the rule in Pinnel's case. The exceptions to the rule in Pinnel's case include: * Payment accompanied by fresh consideration; * Prepayment of debt at the creditor's request; * Payment of a lesser sum at another place at the creditor's request; * A contract with creditors after insolvency of the debtor; * The parties enter into a deed of release; and *
Promissory estoppel A promise is a commitment by someone to do or not do something. As a noun ''promise'' means a declaration assuring that one will or will not do something. As a verb it means to commit oneself by a promise to do or give. It can also mean a capacity ...
.'' Central London Property Trust Ltd v High Trees House Ltd''
947 Year 947 (Roman numerals, CMXLVII) was a common year starting on Friday of the Julian calendar. Events By place Europe * Summer – A Principality of Hungary, Hungarian army led by Grand Prince Taksony of Hungary, Taksony campaign ...
KB 130


See also

*
English contract law English contract law is the body of law that regulates legally binding agreements in England and Wales. With its roots in the lex mercatoria and the activism of the judiciary during the Industrial Revolution, it shares a heritage with countries ...
*'' Central London Property Trust Ltd v High Trees House Ltd'' *'' D&C Builders Ltd v Rees'' *'' Williams v Roffey Bros Ltd'' *'' Re Selectmove Ltd''


Notes


References

* {{italic title English contract case law 1602 in English law 1600s in case law Edward Coke cases English consideration case law