Question 5: Con Con

Denise owes Con the sum of $10,000 for goods sold and delivered. Owing to a recession, she is unable to pay. She tells Con that she can only pay $5,000. Otherwise, she will have to close down the business and take up a job that has been offered to her. Con, who is keen to keep Denise's business operating, therefore promises to accept $5,000 in full and final satisfaction. As a result, Denise continues in the business incurring new expenses.

A few months later, Denise's business became profitable and Con later found out she now has enough money to pay the remaining $5,000. Con demanded Denise to pay the other half of the debt. Denis complained that she is no longer indebted to Con, arguing that if it were not for Con's promise, she would not have incurred new expenses and would probably have taken a financially secure, salaried position.

Issue: Under the rules of Promissory Estoppel, is Con stopped (estopped) from breaking his promise to accept $5000 instead of the $10,000 owed by Denise?

Hint: The following cases will be helpful;

Waltons Stores v Maher

Je Maintiendrai v Quaglia