Able Borrowed $10,000 from Baker,promising to Return It with $1,000

question 12

Multiple Choice

Able borrowed $10,000 from Baker,promising to return it with $1,000 interest on January 1,2006.There is no dispute that Able owes Baker $11,000 due on January 1,2006.On that day,Able gave Baker a valid check in the amount of $10,500 marked "payment in full for loan due January 1,2006." Baker accepted that check and deposited it into his account.If Baker then sues Able for the unpaid $500,what would the result be?

• A)Able wins,because Baker accepted the lesser payment.
• B)Able wins,because Baker made an implied promise to accept $10,500 as full payment,thereby forgiving $500 of the loan.
• C)Baker wins,because Able gave no consideration in exchange for Baker's promise to forgive $500 of the loan.
• D)Baker wins,because marking "payment in full" can never relieve a party of its original obligations under a contract.

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Definitions:

Punctuated Equilibrium

A theory suggesting that evolutionary development occurs through long periods of stability interrupted by short, significant changes.

Deadlines

Specified times or dates by which tasks or projects are required to be completed.

Proper Sequence

The correct or most effective order in which a series of events or steps should occur.

Norming Stage

The Norming Stage is a phase in team development when members resolve differences, appreciate colleagues' strengths, and respect the team's norms and values, enhancing unity.