Contract Enforceability - Case Problem

Brittney Spirits entered into a loan contract with the Expensive Bank of Canada. Under the contract, the bank lent her $10,000 on January 1 for house renovations and she agreed to repay the full amount on June 1 of the same year with an additional $500 of interest. Then Brittney lost her job in March due to COVID-19.

As a result, on April 20 she had a meeting with Howard Drysdale, the bank manager at her branch. She explained her situation and said she was at risk of losing her house by the end of May. She asked if the bank would be willing to accept payment of $9,000 on May 15 in full discharge of the loan. Mr. Drysdale initially felt sorry for her and they signed a document stating that the bank would accept payment of $9,000 on May 15 in full discharge of the loan contract, including accrued interest.

A week later Mr. Drysdale saw Brittney in a TV News cast being interviewed about loosing her job due to COVID-19. The interview concluded with Brittney getting into a $90,000 blue Maserati Ghibli sportscar and driving away. What Mr. Drysdale did not know was that it was her brother's car, not her own.

As a result, on May 15 when Brittney arrived to pay the $9,000, Mr. Drysdale indicated that the bank would take the $9,000, but still wanted the balance of $1,500, being the original principal of $1,000 and the $500 accrued interest by June 1. Brittney believes, however, that having paid the $9,000 on May 15 she is now legally free of the debt and the bank no longer has a claim to the remaining monies.

Questions:

1. Is Brittney correct in her belief that she has been released of the debt as of paying the $9,000 on May 15? If so, why? If not, why not? Please support your answer with reference to the law and the facts

2. If Brittney wanted to be sure on April 20 that her agreement with the bank was going to be enforceable, what additional step could she have taken at that time when in Mr. Drysdale's office AND why would that have eliminated any doubt about her legal position?