A Small Company,Software Design Limited,was Indebted $150,000 to a Sole

question 103

Multiple Choice

A small company,Software Design Limited,was indebted $150,000 to a sole individual,with payment now due.This individual was an investor and former classmate of the firm's president,Angela.Owing to a reversal of fortunes for the company,Software Design could now repay only $100,000.With her investor chalking up the affair to experience,Angela intended the firm to repay what it could now,then she would wind up the company.A few weeks after paying off her creditor at $100,000,but before she could wind up the company,a new investor with both ideas and money approached her,and encouraged Angela to continue on in the business.Once Angela's former classmate heard of the new investor,she demanded the balance due on her loan.Angela briefly considered repaying more,but her new investor demanded a hard-line approach.Angela was holding the repaid note in her hands as her later investor said "Neither you nor she could see the future when she agreed to accept $100,000.But accept she did.Business is business."

• A)Since Software Design gave no consideration for Angela's classmate's promise to forgive the rest of the debt,Angela's classmate can successfully sue the company for the balance.
• B)While Angela's classmate would have been able to sue the firm under Common Law,statute law says that,having accepted part of the debt as payment for the full amount,she cannot now demand the balance.
• C)Whether or not Angela's classmate could successfully sue for the balance of the debt,the courts would not allow a debtor to be unjustly enriched in this way and would order Software Design to repay the balance of the debt.
• D)a and c.
• E)b and c.