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Bank of NS v Maclellan


D & H signed a promissory note for $9,950.

They divorced and H left the province.

Bank proposed to accept from D 25% of the amount owed in full discharge from D from indebtedness under the PN.

D agreed to be in contract to assist in the location of her ex-H.


Was consideration established?


With acceptable consideration, a debtor can pay less than the full amount owed to a creditor (an exception to the rule established in the decision of Foakes v Beer).


Promise to help find the co-debtor is sufficient consideration to make an agreement to settle a debt binding.

Consideration can be inferred from the communications of the parties.


Defendant successful.


Structure of decision making:

Who is the offeror?
Who is the Promisee?
What has been offered?
Are both parties offer sufficient to satisfy consideration?
Does the case create an exception to the rule in Foakes v Beer?

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