Question 2:LOL

Luthor Pty Ltd has an outstanding debt of $10,000 owing to Lois.OfficePty Ltd, a company that has connections with Luthor Pty Ltd, pays Lois the sum of $8,500afterLoishad promised hewill not make any claims against LuthorPty Ltdfor the balance of the $10,000 debt. Later, Lois suffers severe financial hardship and decides to claim the$1,500balance of the debt owing by Luthor Pty Ltd.

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

Hint: The following cases will behelpful;

Foakes v Beer

Pinnel'sCase

HirachandPunamchandv Temple