In Which of the Following Scenarios Is B Estopped from Going

question 15

Multiple Choice

In which of the following scenarios is B estopped from going back on his promise?
I.Amy has recently lost her job. She owes Beverly £500 for last month's rent and is afraid she won't be able to pay £500 this month. Beverly agrees to accept £400 for both months, but expects to receive the normal amount once Amy is working again. A month later, Amy has a new job and is earning twice as much as before. Beverly asks for the outstanding £1000 for the previous two months.
II.Ben contracts with Ahmed to paint his house for £500. By the time Ahmed has done half the job, he realizes he's already exceeded his costs. Ben agrees to pay Ahmed an additional £350 to finish the job and Ahmed promptly does so.

• A) I and II
• B) Only I
• C) Only II
• D) Neither I nor II

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Definitions:

Break-Even Point

The financial state in which total costs equal total revenues, resulting in neither profit nor loss.

Variable Cost

Costs that vary directly with the level of production or volume of services provided.

Composite Units

A measurement used in accounting to collectively represent a group of similar items or transactions as a single entity.

Break-Even Point

The point at which total costs and total revenue are equal, meaning the business is neither making a profit nor a loss.