BLAW 201, CH 15 Questionsss

Required for one year and in return jafer promised to

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required for one year, and in return Jafer promised to keep the machine and to raise no further objections. May either of these parties escape the terms of this agreement on the ground of "no consideration"? When the contract is for the sale of goods, any modification made in good faith by the parties to the contract is binding without regard to the existence of consideration for the modification. 8) On June 1, 2005 Creed loaned $7,000 to Dent in exchange for Dent's promise to make repayment together with 6 percent interest, one year from date. (a) Suppose that on July 1, 2005
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Dent pays $4,500 cash to Creed, in return for Creed's promise to cancel the entire debt. May Creed claim anything more from Dent? (b) Suppose that on July 1, 2006 Dent sends his check for $4,500 to Creed, who cashed the check after seeing upon it the stipulation: "Payment in full of all debts owed by Dent to Creed." May Creed claim anything more from Dent? (c) Suppose that on July 1, 2006 Dent holds Ponte's promissory note payable to Dent in the sum of $4,500 and then Dent endorses and surrenders this note to Creed, in return for Creed's promise to cancel the entire debt. May Creed claim anything more from Dent? Thus, a promise to pay part of an amount that is admittedly owed is not consideration for a promise to discharge the balance. It will not prevent the creditor from demanding the remainder later. When there is a good-faith dispute about the amount of a debt and the debtor tenders a check that states on its face “paid in full” and references the transaction in dispute, but the amount of the check is less than the full amount the creditor asserts is owed, the cashing of the check by the creditor discharges the entire debt. C. No Creed may not claim any more. 9) Carson sold an automobile to Billings, delivered the car and received the full purchase price. Ten days after the sale Billings discovered that Carson had sold similar cars and had made agreements with the buyers to keep the cars in repair for one year free of charge. Billings drove the car to Carson's garage and demanded that Carson make a similar agreement with him. Carson accordingly gave Billings a written agreement stipulating that he would cover all necessary repairs for a period of one year free of charge. At the end of nine months the car required overhauling and Billings had the repairs made at the cost of $850. Is Carson liable for the repairs? Carson is liable When the contract is for the sale of goods, any modification made in good faith by the parties to the contract is binding without regard to the existence of consideration for the modification. 10) Seldon desired to sell his property. He informed Allis, a real estate broker, of this fact and asked Allis to procure a purchaser. Allis succeeded in finding a prospective buyer, Post, whom he introduced to Seldon. After some negotiations, in which Allis assisted, Seldon sold and conveyed the property to Post. Upon the closing of this deal, Seldon promised Allis that he would pay him $2500 for his services. Seldon failed to honor this promise and Allis sued him to recover $2500.
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