Percy Owes Casper $10,000

question 22

Multiple Choice

Percy owes Casper $10,000.Pursuant to their agreement Percy must pay Casper the entire sum on 31 October 2011.Which of the following statements is not true concerning the arrangement?

• A)If Casper agrees that Percy can discharge the debt by paying $5,000 on 30 September 2011 and Percy does so, Casper cannot subsequently insist that Percy pays the entire sum.
• B)If Casper agrees that Percy can discharge the debt by paying $5,000 in US currency and Percy does so, Casper cannot subsequently insist that Percy pays the balance of the debt.
• C)If Casper agrees that Percy can discharge the debt by paying $1,000 and washing Casper's car for 6 months and Percy does so, Casper cannot subsequently insist that Percy pays the whole of the debt.
• D)If Casper feels sorry for Percy and tells him in a telephone conversation that he need only pay half the debt Casper cannot subsequently change his mind and insist on payment of the entire sum.

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Definitions:

Gentlemen's Agreements

Informal, non-binding agreements based on trust, honor, and the integrity of the parties, without any written documentation.

Cartel

An agreement among competing firms to control prices or limit production in a sector, often to maximize profits at the expense of consumers.

Economic Performance

An assessment of how well an economy is functioning, often evaluated through indicators such as GDP growth rate, unemployment rates, and inflation.

Cost Differences

The discrepancies in the amount of money required to produce or obtain goods and services between different companies or regions.