Bruce told Ewen that he would be willing to pay a high rate of interest for a two-month loan of $1000. Ewen agreed to lend him this amount at an annual rate of 25%, repayable June 14. Bruce agreed to these terms. Meanwhile, Bruce recently completed some plumbing work for Martinson for which he was owed $2000. If Bruce fails to pay Ewen on June 14, which of the following would be true?

A) Ewen could sue Martinson for violation (breach) of the contract.
B) Ewen could execute against Bruce even if he had not obtained judgment against him.
C) Ewen could serve Martinson with a garnishee after obtaining judgment requiring him to pay the money owed to Bruce into court if the money had not yet been paid to Bruce.
D) If Ewen obtained a judgment against Bruce, he could compel him to be examined about Martinson's income, property, and debts.
E) Ewen does not have to wait to obtain a judgment before executing against Bruce's assets.

Question

Diana Machado · Accepted Answer

Final Answer : C, Explanation :  C) Ewen could serve Martinson with a garnishee after obtaining judgment requiring him to pay the money owed to Bruce into court if the money had not yet been paid to Bruce. This is because garnishment is a legal process used by creditors to collect debts from a debtor's third party, such as an employer or someone who owes the debtor money, after obtaining a court judgment.

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