Asked by Nguy?n Luân on Jun 07, 2024
Verified
Which of the following should be the result in regard to Isabella's obligation to Credit Card Company B?
A) That the company is not bound by its promise because the debt was liquidated.
B) That because Isabella offered and the company accepted a different performance in discharge of the obligation, the company is bound.
C) That because the car is worth only $1,000, nowhere near the amount of the debt, the company is released from its promise.
D) That under equitable principles, upon disaffirming the agreement, Isabella may keep the car, and the company must take a deduction of 50% on all amounts due.
E) That under equitable principles, upon disaffirming the agreement, Isabella must transfer the car to the company, and the company must take a deduction of 50% on all amounts due after sums received from the sale of the car are credited to Isabella's account.
Liquidated Debt
A debt or claim whose precise monetary value has been determined, acknowledged, or agreed upon by all involved parties.
Performance
The act of carrying out or accomplishing an action, task, or function.
Equitable Principles
Principles based on fairness, morality, and justice rather than strict rules of law.
- Comprehend the standards used to identify if a debt is regarded as settled, encompassing through particular modes of fulfillment and contracts.
Verified Answer
IN
Irabaruta Nay-deenJun 08, 2024
Final Answer :
B
Explanation :
Because Isabella and Credit Card Company B agreed on a different performance (the car) in discharge of the original debt, and this agreement was formalized through e-mail, the company is bound by its promise to accept the car as payment in full.
Learning Objectives
- Comprehend the standards used to identify if a debt is regarded as settled, encompassing through particular modes of fulfillment and contracts.