1. Assume that Pyramid Computer filed an answer admitting all of the allegations of the complaint but asserting as an affirmative defense the following: "In recent months defendant Pyramid Computer Corporation has suffered severe financial setbacks and has been unable to meet its financial obligations. Defendants offered to pay plaintiff the sum of $1,000 per month toward the obligation described in the complaint; however, plaintiff refused and continues to refuse such compromise." There is no dispute regarding Pyramid Computer's financial situation or its offer to settle.

2. Assume that Pyramid Computer filed a general denial to Jones's complaint. During the discovery process, the deposition of the president of Pyramid Computer Corporation was taken. During the deposition, the president admitted that Pyramid Computer and Jones had a written agreement regarding the sale and purchase of video processors, that Pyramid Computer received the goods that were the subject of this lawsuit, and that payment was not made because of Pyramid Computer's financial situation.