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1.A has lent $100,000 to B to be returned in 10 months in equal instalments of $10,000 every month. B made payment for sincerely for
1.A has lent $100,000 to B to be returned in 10 months in equal instalments of $10,000 every month. B made payment for sincerely for the first three months.After 3 months, B honestly explains that she is not in a position to return the balance $70,000. Realizing the situation, A agrees to accept $50,000 in exchange of the old debt of $70,000. B pays a $50,000 accordingly.
a. Can A later insist that B still owes $20,000? Yes or No or both? [1]
b. When Yes, explain why. [5]
c. When No, explain under what conditions? [9]
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