Modify the facts in (a) by assuming that Ann owed Barry the $2,500 on Ann’s purchase of a motorcycle from Barry. Result?
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Ann owed $2,500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2016. In March 2017, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $1,500 of the debt at once, Barry would release her from the balance. Ann paid $1,500 and stated to Barry that all claims had been paid in full. In August 2017, Barry demanded the unpaid balance and subsequently sued Ann for $1,000. Result? Modify the facts in (a) by assuming that Barry gave Ann a written receipt stating that all claims had been paid in full. Result? Modify the facts in (a) by assuming that Ann owed Barry the $2,500 on Ann’s purchase of a motorcycle from Barry. Result? |
Explanation
Individual A's debt is the consideration that needs to be paid for the services rendered by Individual B. Individual B has the right to get paid in full for the services rendered to Individual A.
Based on the common law, making a payment less than the value thatwas agreed upon is considered to be legally insufficient to consider that the debt is completely paid off.
The legal sufficiency has to be there to meet the requirements of consideration. Individual A has to settle the balance amount with Individual B.
Verified Answer
This is a case of settlement of undisputed debt. Case will be settled in the favor of Individual B.
