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Q2 In 2017, Ramasamy borrowed RM1,000-00 from Samivelloo repayable (without interest) on demand. In 2018, Ramasany's father, Muthusamy wrote to Samivelloo enclosing a cheque for

Q2In 2017, Ramasamy borrowed RM1,000-00 from Samivelloo repayable (without interest) on demand. In 2018, Ramasany's father, Muthusamy wrote to Samivelloo "enclosing a cheque for RM500-00 in full settlement of the debt which my son Ramasamy owes you." Samivelloo whilst cashing the cheque, wrote to both Ramasamy and Muthusamy stating that he accepted the RM500-00 on account and the balance of RM500-00 remained payable.

By the beginning of this year, Ramasamy had saved RM500-00 and he called upon Samivelloo and thereafter Samivelloo then said to Ramasamy, "I will let you off the balance of your debt".

On the strength of this, Ramasamy immedietly bought himself a second-hand motorcycle. However, last week Ramasamy received a letter from Samivelloo demanding the balance of RM500-00.

Propose solution to Ramasamy.

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