Contract Law Tip

x owes money to y.

y forgets to collect, such that the statute of limitations is tolled. x, for moral reasons or otherwise, puts in writing that he’ll pay the debt even though he’s no longer legally obligated to do so. You might be thinking that x owes nothing to y. The theory might be that when x promised to pay a debt he no longer owed, that was a gift, not a contract. Everything you’ve ever learned about consideration in contract law would lead you to that result. Not so much. If a debtor promises to pay a debt that’s been barred by the statute of limitations, the debtor will be bound to pay the amount promised (which could differ from the amount of the original debt) provided the promise is in writing. Filed under “contract law is weird.”