Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000, due on February 25, 2017. The company is having difficulties

XYZ company, a distributor of auto parts, is in debt to the bank for $35,000, due on February 25, 2017. The company is having difficulties and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements is false? Select one: O a. If the company obtained from the bank the bank's promise to forgive the $2000 under seal, the bank could not later sue for the remainder. O b. At common law, if the bank accepted the $33,000 as payment in full, even absent additional consideration, it could not later sue for the remainder because such promises are always binding. O c. In some jurisdictions, a statutory provision provides that the creditor who accepts less than full payment as payment in full cannot later sue for the remainder. O d. So long as they don't take the money, the bank can still sue for the entire amount. O e. If the bank agrees to accept the $33,000 as payment in full if paid early, by February 15, and the company does as requested, the bank could not later sue for the remainder because the company gave good consideration for the bank's forgiveness of the debt.
image text in transcribed
XYZ company, a distributor of auto parts, is in debt to the bank for $35,000, due on February 25,2017 . The company is having difficulties and wants to negotiate with the bank to pay only $33,000 as payment in full. With these facts in mind, which of the following statements is false? Select one: a. If the company obtained from the bank the bank's promise to forgive the $2000 under seal, the bank could not later sue for the remainder. b. At common law, if the bank accepted the $33,000 as payment in full, even absent additional consideration, it could not later sue for the remainder because such promises are always binding. c. In some jurisdictions, a statutory provision provides that the creditor who accepts less than full payment as payment in full cannot later sue for the remainder. d. So long as they don't take the money, the bank can still sue for the entire amount. e. If the bank agrees to accept the $33,000 as payment in full if paid early, by February 15 , and the company does as requested, the bank could not later sue for the remainder because the company gave good consideration for the bank's forgiveness of the debt

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

Students also viewed these Accounting questions

Question

What are some of the possible scenes from our future?

Answered: 1 week ago