NSW Agree waive outstanding fee by email, binding or not

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Lee Richard

Member
26 April 2021
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Hi

Hold a question regarding if the agreement to waive outstanding fee by email is binding?

I owed some outstanding fee to a contractor. Because of Covid impact, I cannot pay all. So I emailed to the contractor asked to pay lesser as the final amount. He agreed and confirmed no outstanding fee in his email after I paid this lesser amount.

However, just knew it seems that there was no consideration btw us, so this agreement is not binding and the contractor still can claim the remaining fee in the future.

Very confused and hope someone can help me to figure out this.

Thanks a lot.
 

Paul Cott

Well-Known Member
LawTap Verified
26 May 2014
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Ballarat, Victoria
Hi Lee,
You are right - as matter of contract law, a contract needs consideration to be binding but in my view an email to waive the outstanding fee is probably binding as it is in writing. Rather than this situation requiring consideration to firm a new contract this is probably more like a variation to the original contract which he accepted in writing.
 

Lee Richard

Member
26 April 2021
4
0
1
Hi Lee,
You are right - as matter of contract law, a contract needs consideration to be binding but in my view an email to waive the outstanding fee is probably binding as it is in writing. Rather than this situation requiring consideration to firm a new contract this is probably more like a variation to the original contract which he accepted in writing.
Very appreciate Paul, do you mean a variation of the original contract does not need consideration?
 

Rod

Lawyer
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27 May 2014
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Better to have the variation described as a deed.
 

Lee Richard

Member
26 April 2021
4
0
1
Thank you very much, Rod.

I consider to have a deed, but lost the contact with this contractor. So wonder if there is risk for me to be requested the outstanding fee in the future.
Better to have the variation described as a deed.