Question 2: LOL

Luthor Pty Ltd has an outstanding debt of $10,000 owing to Lois. Office Pty Ltd, a company that has connections with Luthor Pty Ltd, pays Lois the sum of $8,500 after Lois had promised he will not make any claims against Luthor Pty Ltd for the balance of the $10,000 debt. Later, Lois suffers severe financial hardship and decides to claim the $1,500 balance of the debt owing by Luthor Pty Ltd.

Issue: Does Luthor Pty Ltd have to pay the balance?

Relevant law & Application:

Hint: The following cases will be helpful;

Foakes v Beer

Pinnel's Case

HirachandPunamchand v Temple