(a) Adam agreed to accept Bob's servicing of his car as a payment in kind. He may not recover any further sum from Bob. Consideration need not be 'adequate' at law but must be sufficient so the question of whether servicing of the car is valuable enough is not relevant.
(b) Prima facie, Adam's agreement to accept only half of the debt appears to be unsupported by consideration and therefore Adam may still claim the remaining amount. However, Dawn may claim he cannot do so because of the doctrine of promissory estoppel, since she acted on the strength of his waiver by spending the remaining debt money on her recording.
(c) If Adam can show that he did not accept part payment voluntarily or that Dawn took advantage of his financial difficulty, he may be entitled to recover following D and C Builders v Rees 1966. Alternatively, it may be argued that following the success of Dawn's recording, her reliance on the waiver was not to her detriment and it would be inequitable to allow her to avoid her obligations. The circumstances are such that it may be just to allow Adam to enforce his legal rights.
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