Ompensation laws Essay Example | Topics and Well Written Essays - 1000 words

Ompensation laws - Essay Example This paper presents analysis of a case study in light of the compensation laws. The characters are Orlando (lender) and Kate (borrower). I am supposed to advise Orlando apropos his wish to sue Kate for the remaining amount of debt that he had formerly waived. Before writing my advice to Orlando, it is customary to briefly review the various contract laws and conditions that apply on the case under consideration. Promissory estoppel: Promissory estoppel is employed as one of the legal principles in US law. It may also exist in many other legal systems with a different title. â€Å"Promissory estoppel allows a party to recover on a promise even though that promise was made without consideration† (Oppenheimer, 2011). It necessarily keeps an individual from asserting that a promise he/she made in the past is not to be upheld. When a party who holds a contract with another party, makes a promise to it that essentially waives any or all traits of the contract between the two, upon c ertain conditions that the other party complies with, the promisor no more remains in a position to enforce the contract at a later point in time. This is the fundamental principle of promissory estoppel. The law gives all the importance to a contract in the analysis of cases. Previously, a promise that rendered the contract unenforceable in any way was not given any consideration as per the common law theory. However, promises were frequently made in practice that caused considerable abuse that was not adequately addressed by the common law. Equity later brought up a new disparity of estoppel. Because of that, although the promise was not given due consideration, the promisor is deprived of the right to enforce the earlier contract against which, he/she had made a promise to the other party. Contract offer and acceptance: In contract law, a traditional approach that can be used to check whether or not an agreement sustains between two or more parties, is the offer and acceptance an alysis. An offer is a suggestion made by one entity to another whereby the first expresses a will to engage in a contract on clearly defined conditions. The contract does not leave any room for further discussions. The rules are clearly identified and fixed. Once the second entity accedes to the conditions put forth by the first entity and conveys its acceptance to the offerer, a contract is established. A contract forms as a result of momentary unionization of minds of the parties entering it, and serves as a standard for the time to come. Such developments as the estoppel law, unjust enhancement and inappropriate conduct have caused considerable damage to the classical contract development approach. Part payment of debt: Part payment of debt involves partial return of the debt instead of full by the borrower to the lender. When looked at from the perspective this contract law, Orlando may still have some rights to exercise. Although Orlando consented to accept ?625 from Kate in fu ll satisfaction of the original amount i.e. ?1250, this does not bind Orlando by his promise. The law offers Orlando right to demand the remaining amount by suing Kate at a later point in time. â€Å"Part payment of a lesser sum, on the day (that it is due) cannot be any satisfaction for the whole because it appears to the judges that by no possibility a lesser sum can be satisfaction to the claimant for a greater sum†¦Ã¢â‚¬  (SIC, 2010). However, Orlando has lost his right over the rest of the money because the case involves one of the three exceptions to the general rule. The case reveals that Orlando has asked Kate to return half of the money till Wednesday, but Kate paid him the sum on Tuesday instead of Wednesday which essentially means that Orlando had accepted the payment, one day in advance of the payment date he had formerly told Kate. According to the law, if the creditor accepts the payment in advance of the due date, he waives his/her right to sue the borrower lat er (SIC, 2010). Consideration: Consideration is the name of a benefit of any sort