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Solution Library
Scenario: Gratuitous Promise For Debt Payment
Question
Mickey makes car parts. Foreign competition has badly affected business and Mickey is finding it difficult to pay the monthly rent for the factory which he leases from Jing. In April 2012 he told Jing of his difficulties and said “You already have factories you cannot lease and soon you may have one more. Would you consider reducing my rent to half?” Jing agreed to do so until Mickey’s business improved. One year later business was no better. Now Jing was also in financial difficulty and demanded full rent from May 2013, as well as all the rent in arrears, explaining that she needed all the money to keep ownership of the factory. Mickey refuses Jing’s demands. Using the law of contract (not any legislation) discuss the arguments which Mickey and Jing could raise for the settlement of this dispute AND judge how it would be decided.
Summary
The question belongs to Law and it discusses about a scenario where a person facing difficulty in business and settles with his landlord to pay half the rent until his business recovers. The business never recovers and the landlord wants the full rent and arrears.
Total Word Count 706
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