Use the Fact Situation in Q25 to Answer the Related

question 26

Multiple Choice

Use the fact situation in Q25 to answer the related question that follows. Review the fact situation above and now assume that on November 1,B said to A,"Rather than paying me the full $5000.00,just pay me $3500.00 and give me your watch,and your debt will be cancelled." A's watch is a cheap one worth $5.00.A gives B the watch and pays him the $3500.00.
In this situation,

• A)B can recover the $1500.00 from A because the contract was to repay a debt of $3500.00.
• B)B cannot recover the $1500.00 from A because A's watch is fresh consideration.
• C)B is still estopped by promissory estoppel from collecting the $1500.00 from A.
• D)there is still no fresh consideration for B's promise to reduce A's debt to $3500.00.
• E)the watch is meaningless and A will still owe B $1500.00.

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