## Facts

- Mrs. Julia Beer obtained a money judgment against Dr. John Weston Foakes for £2090 19s, with statutory interest payable under the Judgments Act 1838.
- The parties executed a written memorandum (Dec. 21, 1876) providing that Foakes would pay £500 immediately and the balance of the principal by half-yearly installments of £150.
- Beer promised that, if Foakes made those payments as stipulated, she would not take proceedings on the judgment.
- Foakes paid the full principal by installments, but no interest was paid.
- Beer later claimed the accrued statutory interest (about £302 19s 6d).
- Trial court ruled for Foakes; the Court of Appeal reversed for Beer; the House of Lords affirmed the Court of Appeal.

## Issues

1. Whether the memorandum, properly construed, barred Beer from claiming statutory interest as well as enforcing the principal.
2. If the memorandum purported to waive interest, whether Beer’s promise was enforceable without fresh consideration (and not being under seal).

## Decision

- The House of Lords affirmed judgment for Beer.
- Assuming the agreement was intended to preclude enforcement of interest, it was unenforceable because Foakes gave no consideration beyond his existing obligation to pay the judgment debt.
- Beer was entitled to recover the statutory interest notwithstanding the installment arrangement and her promise not to proceed on the judgment.

## Legal Principles

- Part payment of a liquidated debt, even if accepted, is not good consideration for a promise to discharge the whole (or forego the balance), absent additional consideration or a deed.
- Performance of an existing legal duty (here, paying an already-owed judgment debt) does not supply consideration for a creditor’s additional promise.
- To make a creditor’s forbearance binding in this setting, the debtor must confer some legally recognized additional benefit (actual or contingent) beyond payment of the lesser sum or payment by installments.

## Conclusion

The House of Lords held that a creditor’s promise to forgo statutory interest in return for installment payment of an existing judgment debt was not binding for lack of consideration, leaving the creditor free to claim the interest despite the debtor’s full payment of principal.


Foakes v. Beer, [1884] UKHL 1 (H.L. 1884)