In January,Alex Promised to Pay Y-K Inc

question 30

Multiple Choice

In January,Alex promised to pay Y-K Inc.$5,000 if it would refrain from filing suit against him on a breach of contract action.Y-K agreed and accepted a $5,000 check from Alex.Which of the following statements is correct?

• A)Y-K's promise to refrain from suing Alex was not supported by legal consideration.
• B)Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.
• C)This is an accord and satisfaction,and Y-K cannot sue.
• D)The courts would apply promissory estoppel in this situation.

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Definitions:

Stock Securities

Financial instruments that represent ownership shares in a corporation, giving shareholders a claim to part of the company’s assets and earnings.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries, presenting the financial position and results of operations as a single entity.

Information Overload

A situation where an individual is exposed to more information than they can effectively process or manage.

Excess Cash

Surplus funds that exceed the normal operating needs of a business, often invested in short-term securities or used for acquisitions.