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:

Potential Shortcomings

Possible weaknesses or failures that could limit success or effectiveness in achieving desired outcomes or objectives.

Production Budget

A financial plan that estimates the cost of producing a product or offering a service, including direct materials, labor, and overhead.

Desired Ending Inventory

The ideal quantity of goods a company aims to have on hand at the end of an accounting period to meet customer demand without overstocking.

Cash Disbursements

Payments made in cash or through cash equivalents, including expenses, debt payments, and purchases of goods and services.