Mohana Promised Ian That She Would Pay $10 000 to Him

question 10

Multiple Choice

Mohana promised Ian that she would pay $10 000 to him on his birthday. Ian gave nothing in exchange for that promise and neither party placed their seal on the document containing Mohana's promise. Ian demanded payment on his birthday. Mohana refused, primarily on the basis that she had recently become quite annoyed with him. Ian then threatened to start a lawsuit. However, he also offered to settle that lawsuit in exchange for payment of $7500. Mohana accepted that offer in an attempt to avoid paying the full $10 000. Several weeks after paying $7500, however, she learned that her initial promise was not actually legally enforceable. She also learned that Ian, who was a lawyer, was aware of that fact all along. Which of the following statements is the most accurate?

• A) Mohana would have been required to pay $10 000 to Ian if he had placed his seal on the document that contained her promise.
• B) Mohana can recover her $7500 because Ian did not give consideration in exchange for her initial promise to pay $10 000.
• C) Mohana cannot recover $7500 from Ian because she paid that money in exchange for his forbearance to sue.
• D) Mohana can recover only the difference between the sum that she paid ($7500) and the sum that she originally promised to pay ($10 000).
• E) Mohana can recover $7500 from Ian because his threat to sue her for payment of $10 000 was not made honestly.

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Definitions:

Prevent Trespass

Actions or measures taken to stop unauthorized entry or infringement on one's property.

Property Law

The area of law that governs the various forms of ownership and tenancy in real property (land as distinct from personal or movable possessions) and in personal property, within the common law legal system.

Dispose

To get rid of something, typically by throwing away or giving it away.

Type, Grade, Quantity

Specifications that define the quality and amount of materials or goods required for a particular purpose or contract.