Asked by jessica tudosa on Apr 29, 2024
Verified
Nancy's car collides with Randy's truck at an intersection.Randy believes the accident is his fault and asks Nancy if she will agree to a settlement of $5,000 for the damage to her vehicle and her promise not to sue him.Nancy believes the accident is her fault,but agrees to Randy's proposal anyway.Which of the following statements is true?
A) Nancy's forbearance does not amount to consideration because Randy's promise is illusory.
B) Nancy's forbearance does not amount to consideration because she does not have a good faith belief in the validity of her claim against Randy.
C) Nancy's forbearance amounts to consideration because she has a good faith belief in the validity of her claim against Randy.
D) Nancy's forbearance amounts to consideration because Randy has a moral obligation.
Moral Obligation
A sense of duty or ethical responsibility not enforceable by law but considered binding in personal or social contexts.
Forbearance
The temporary postponement of mortgage payments or enforcement of a policy, often to prevent foreclosure.
Good Faith Belief
An underlying assumption or conviction by an individual that their actions or decisions are justified, fair, and honest, based on the information available to them.
- Analyze the conditions for the fulfillment of promises in the context of resolving legal disputes or financial duties.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
B
Explanation :
Forbearance to sue is an agreement by a promisee to refrain,or forbear,from pursuing a legal claim against a promisor can be valid consideration to support a return promise-usually to pay a sum of money-by a promisor.It is generally said that the promisee must have a good faith belief in the validity of his or her claim before forbearance amounts to consideration.
Learning Objectives
- Analyze the conditions for the fulfillment of promises in the context of resolving legal disputes or financial duties.