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.