Question
Jim owes Mike $10,000. There is no dispute as to the validity or amount of the debt. Jim tells Mike that his Rolex watch is
Jim owes Mike $10,000. There is no dispute as to the validity or amount of the debt. Jim tells Mike that his Rolex watch is worth $5,000 and offers Mike the watch in satisfaction of the debt. Mike accepts. Mike later finds out that the watch is really only worth $3,500. Jim thought the watch was worth $5,000 and did not fraudulently represent the value. How much does Jim still owe Mike? A. $5,000. The watch is consideration and they agreed it was worth $5,000. B. $10,000. The watch is not consideration since the debt is liquidated. C. $6,500. The watch is consideration but only for the actual value of the watch. D. $0. The watch is considered full satisfaction regardless of value.
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