Discharging a contractual debt This Practice Note provides guidance on discharging a contractual debt. It explains how to establish when a debt is due for payment, what amounts to discharge, the effect of part payment of a debt (including discussion of the rule in Pinnel’s case, payment by instalments, compromise agreements and promissory estoppel), the role of third parties and how payments are appropriated to multiple debts. For guidance on precisely what a claim in debt is, see Practice Note: Debt claims. For practical guidance on bringing debt claims, see: • Practice Note: Starting a debt claim—a practical guide • Practice Note: Pleading debt claims—worked hypothetical examples • Starting a contractual debt claim—checklist • Responding to a contractual debt claim—checklist See also Precedents: • Letter of claim—contractual debt claim • Letter of claim—contractual debt claim—in compliance with the Pre-Action Protocol for Debt Claims • Covering letter to accompany Reply Form in response to letter of claim sent pursuant to the Pre-Action Protocol for Debt Claims • Particulars of claim—contractual debt claim When does a debt become due for payment? Before considering how to discharge a debt, it is essential to understand when a debt becomes due for payment. If the obligation to pay a debt has not actually arisen, then there is no need to discharge. Precisely when the obligation to pay arises will be determined by the terms of the agreement. Close attention should be paid to the provisions
Discover our 1 Practice Notes on Defence of tender before claim
Where a party wishes to settle can they show this intention/goodwill by paying money directly to the court or does this have to be done by a Part 36 offer? Payments into court You should pay money directly into the Court Funds Office if: • you’ve been ordered to make a payment to settle a court case • you offered to settle in full before the case started, but it wasn’t accepted and you want to use a ‘defence of tender before claim’—for further information, see Commentary: Defence of tender before claim: Atkin's Court Forms [261]. See also how the Court of Appeal applied the rule in RSM Bentley Jennison v Ayton discussed in News Analysis: The common law defence of ‘tender before action’ (RSM Bentley Jennison v Ayton) • you have to refund an overpayment It should be noted that in April 2007, the requirement for payment into court for all defendants in relation to Part 36 offers was abolished. For more information, see guidance: Pay money into the Court Funds Office. Settlement offers If you are looking to settle your dispute it is important to consider the most appropriate method to effect a settlement. You can either do this through conducting settlement negotiations with the other side or you can consider making a formal settlement offer. This may be done through the use of a Part 36 offer—a formal mechanism of
See the 1 Q&As about Defence of tender before claim
Dispute Resolution analysis: The minutes of the CPR Committee (CPRC) meeting of 5 February 2021 (held via video conference due to the coronavirus (COVID-19) pandemic) cover a number of areas including the RTA portal (whiplash) amendments to the CPR, the CPR online rules, drafting proposals in relation to judicial review (CPR 54), various lacuna sub-committee items, the Civil Justice Council (CJC) working group report on low value PI claims, the CJC consultation on guideline hourly rates, the vision for civil justice and the CPRC, amends to various forms, amendments to the CPR if the UK re-joins the Lugano Convention and e-filing in Queen’s Bench regions.
Personal Injury analysis: Matthew Flinn of 1 Crown Office Row discusses the changes to interest rates for Court Funds Office (CFO) special and basic accounts which were introduced on 1 June 2020. Flinn explains the reasoning behind the change, its practical implications and how practitioners should adjust their working practices in light of the change.
Read the latest 3 News articles on Defence of tender before claim
Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
"We constantly have to look at our own supply chain and choose the best value and quality-focused solutions for our offices. That was really the genesis of our switch to LexisNexis."
Harper Mcleod
Access all documents on Defence of tender before claim
0330 161 1234