Priya owes Harland Ltd £10,000, due on 1 June. At Harland's request she pays £8,000 on 1 May, and Harland agrees to accept this in full settlement. In July Harland demands the remaining £2,000. Is Priya liable?

Correct answer: D) No, because early payment at the creditor's request is fresh consideration for the promise to accept less

Explanation

Under Pinnel's Case and Foakes v Beer, paying a smaller sum on the due date does not discharge the whole debt. However, paying early at the creditor's request provides fresh consideration, so Harland's promise to accept £8,000 is binding. Promissory estoppel is not automatic and depends on its own requirements. Fresh consideration means a deed is not needed.