Luthor Pty Ltd has an outstanding debt of $10,000 owing to Lois. Super Pty Ld, a company that has connections with Luthor Pty Ltd, pays Lois the sum of $8,500 on the understanding that Lois will not make any claims against Luthor for the balance of the $10,000 debt. Later, Lois suffers severe financial hardship and decides to claim the balance of the debt owing by Luthor Pty Ltd. Issue: Does Luthor Pty Ltd have to pay the balance? Rule: For a contract to exist, it must be supported with sufficient consideration. In the case of renegotiating debts, or part performance as final discharge to the contract is considered consideration: Foakes v However the part-payment of the debt as final discharge can be sufficient consideration if it was paid by a + party: Punamchand v Check Application