ExpertACCA · Question 05 · The law of obligations
Section A
During a severe economic downturn, a landlord agrees to accept half rent from a commercial tenant operating an artisanal bakery. Six months later, the economy recovers, and the landlord demands the arrears for the past six months. Under the equitable doctrine of promissory estoppel, which of the following statements is true?
Section A
During a severe economic downturn, a landlord agrees to accept half rent from a commercial tenant operating an artisanal bakery. Six months later, the economy recovers, and the landlord demands the arrears for the past six months. Under the equitable doctrine of promissory estoppel, which of the following statements is true?
Answer options:
The landlord can claim the arrears because part payment of a debt is never good consideration.
The landlord may be estopped from claiming the arrears if it would be inequitable to do so, as the tenant relied on the promise.
Promissory estoppel can be used by the tenant to sue the landlord for a permanent reduction in rent.
The landlord cannot claim future full rent even after giving reasonable notice.
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