Fred Owed a Debt of $10 000 to Regina

question 65

Multiple Choice

Fred owed a debt of $10 000 to Regina. Because he had lost his job and was experiencing financial difficulties, he hoped that she would take pity on him and would not insist upon payment. Fred therefore said to Tyra, who was Regina's colleague, "If you can get her to drop the matter, I'll make it worth your while." Tyra felt sorry for Fred and said that she would do her best. A week later, she called Fred and explained that Regina had agreed under seal to forgive the $10 000 debt. Fred replied by saying, "Many thanks. Come by my house and I'll pay you $500 for your effort." Which of the following statements is TRUE?

• A) Regina can still recover $10 000 from Fred because he did not use his own seal.
• B) The agreement between Tyra and Fred is enforceable because Fred's promise to pay $500 is past consideration.
• C) Tyra would not be entitled to any payment from Fred if he did not state the specific amount of $500.
• D) Regina cannot sue under the agreement that was created between Tyra and Fred.
• E) Although Regina is no longer entitled to receive $10 000 from Fred, she can still recover a reasonable amount from him.

---

Definitions:

Massacre

An event involving the deliberate and violent killing of a large number of people.

Medal of Honor

The highest military decoration awarded by the United States to recognize U.S. military service members who have distinguished themselves by acts of valor.

Labor Movement

A social and political movement aimed at improving rights, conditions, and wages for workers through unions and labor laws.

Wealth

An accumulation of valuable financial assets or physical possessions which can include money, real estate, and personal property.