Asked by Kirstyn Alston on May 08, 2024
Verified
Sam owed Joe $6000 due January 12, 2017. On January 1st, Joe said he'd take $5000 in full satisfaction of the debt if Sam paid him $5000 on January 5th instead. Sam paid on January 5th. A week later, Joe wants to sue Sam for the $1000 he (Joe) was legally owed. Which of the following is true?
A) Joe would win because his forgiveness of the loan was gratuitous, (i.e., unsupported by consideration) .
B) Joe would win because they cannot change the original deal.
C) Joe would lose because of the doctrine of quantum meruit.
D) Joe would lose because of the rule that past consideration is no consideration.
E) Joe would lose because early repayment constituted consideration to support the new arrangement.
Quantum Meruit
A legal principle that allows a party to receive a reasonable payment for services provided when no specified compensation is involved.
Past Consideration
Something completed before an agreement is made; it is not valid consideration.
Early Repayment
The act of paying off a loan or mortgage before the agreed-upon due date, often resulting in financial penalties.
- Review the basic elements of consideration and their significance in the modification of agreements.
Verified Answer
SW
Shaniece WesleyMay 11, 2024
Final Answer :
E
Explanation :
Joe would lose because early repayment constituted consideration to support the new arrangement.
Learning Objectives
- Review the basic elements of consideration and their significance in the modification of agreements.