chapter 11 hw - law

Topics: Contract, Consideration, Law Pages: 2 (765 words) Published: October 5, 2014
1) a- Yes, P may recover, as this is a breach of the contract. P, in agreeing to accept the pension, forfeited his rights to take another job in the industry. This is a legal detriment to P, the promisee – one which did not exist prior to the formation of the contract. b- This is not enforceable. This is an example of past consideration, which is not consideration. P had already rendered the service at the time the company’s promise was made. In other words, the service was not induced by or given in exchange of the promise. If the promise were in writing and acknowledged the past consideration, however, this contract would be enforceable.

3) This is an example of payment on liquidated debt. Because D assumed a new legal detriment – that is, he would not only pay the originally-agreed upon $50,000, but also pay 9% interest on top of that amount – C is legally bound on his promise.

4) No, the debt is not discharged, as this is a matured liquidated debt and is only satisfied when the debtor completes his/her entire obligation – full payment. In addition, as NY GOL 5-1103 states, a signature endorsing a check is not legally sufficient for accepting a lesser amount to satisfy an existing debt. In other words, there must be accompanying documentation with the promisor’s signature, indicating the acceptance of a lesser amount to satisfy the debt.

5) S may not recover here, as there exists accord and satisfaction in a disputed form of liquidated debt. In this particular instance, accord and satisfaction occurs when B sends a check for a bonafide disputed amount, based on the expert opinion that the refrigerators were damaged upon shipment. The acceptance and cashing of the check by S discharged the remaining debt by cashing the check. If S had indicated, “under protest” or “without prejudice” when endorsing the check, he would have prevented accord and satisfaction from occurring, per New York’s interpretation of UCC 1-207.

6) S may not recover. Because S...
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