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Questions 1 - 2 are based on the following fact situation ( same as before ) : Danny owes Tim $ 1 , 0 0
Questions are based on the following fact situation same as before:
Danny owes Tim $ As per the terms of their debt agreement, payment was to be made on March st On March nd Tim writes to Danny and states the following in his letter: "I do not want to sue you, but I need the money immediately. If you pay me $ within one week of the date of this letter, I will release you from full payment of the debt." Danny sends Tim a check for the $ within the week. However, Tim does not give Danny a discharge for the rest of the debt. Soon afterwards, Tim sues Danny for the $
For the purposes of this question only, assume that there is an undisputed debt obligation owed by Danny to Tim. However, the parties are in dispute as to the amount of the debt. Danny contends that he only owes Tim $ Tim, on the other hand, alleges that Danny owes him $ Danny tenders Tim a check for $ which Tim deposits in his bank account. Shortly thereafter, Tim institutes a suit to recover the outstanding balance of $ Judgment for:
A Danny, since payment of the $ would be sufficient consideration for the discharge of the entire debt.
B Danny, since payment of the $ would be sufficient consideration for the satisfaction of the liquidated debt.
C Tim, since Danny was under a preexisting duty to pay the entire $
D Tim, since payment of a lesser sum does not constitute sufficient consideration to discharge an unliquidated debt.
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