Use This Fact Situation to Answer the Related Questions That

question 42

Multiple Choice

Use this fact situation to answer the related questions that follow. On June 1,A,a debtor,loans $5000.00 from B,a creditor,and agrees to repay it by December 1 of the same year.On November 1,B says to A,"Rather than paying me the full $5000.00,just pay me $3500.00 and your debt will be cancelled." A pays the $3500.00,but B now changes his mind and tells A that he wants A to pay him the balance of $1500.00.
In this situation at common law,

• A)B cannot recover the extra $1500.00,because he agreed to reduce the amount of the debt.
• B)B is estopped by promissory estoppel from recovering the $1500.00.
• C)B can recover the extra $1500.00 on the basis of quantum meruit.
• D)B can recover the extra $1500.00 under present-day legislation.
• E)B can recover the extra $1500.00 since his promise lacks fresh consideration.

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Definitions:

Subsidiary Dissolved

The process of legally dissolving a subsidiary company, involving the winding up of its operations and distribution of its assets.

Subsidiary Incorporation

The process of legally establishing a subsidiary corporation, which then becomes an entity separate from the parent company.

Statutory Merger

A merger in accordance with specific laws where one company survives and the absorbed company ceases to exist.