Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Note Repayment: Gina Gigabyte, borrowed $500,000 (interest free) from Sally Brine in April 2015 and used the money for start up costs for her now

Note Repayment:

Gina Gigabyte, borrowed $500,000 (interest free) from Sally Brine in April 2015 and used the money for start up costs for her now successful music app business. Gigabyte signed the attached Promissory Note in which she agreed to repay the $500,000 loan on May 31, 2016. Brine has had some recent financial difficulties, is in need of cash, and telephoned Gigabyte and made the following offer. Brine promised that if Gigabyte pays Brine $400,000 by December 30, 2015, Brine will accept $400,000 in full satisfaction of Gigabyte's obligation to pay $500,000 Gigabyte is very interested in the proposal. Although she will have to struggle a bit to pay the money back now, it would be worth it to her if she can be certain that she would be able to save $100,000 by paying $400,000 by December 30, 2015. Gigabyte wanted Brine to put her promise in writing, but when she suggested it, Brine said that her word was good and was offended that Gigabyte would suggest that she could not be trusted Gigabyte has asked for your advice as to whether she should accept Brine's offer.

Please prepare a memo to Gigabyte advising her on this matter. Y

our memo should specifically deal with and explain the issues of: (1) whether Brine's promise will be binding and enforceable and (2) whether the fact that her promise will not be in writing will be a problem. Explain clearly You should use the appropriate legal terminology but you should e so that Gigabyte, who has no background in law, will understand.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law Of Tort

Authors: John Cooke

14th Edition

1292251360, 978-1292251363

More Books

Students also viewed these Law questions

Question

Write the radical in exponential form. 8/w11 8/w11 W

Answered: 1 week ago