Question

Billy owes a liquidated debt of $3,000 to Rayna, his personal weight trainer. Billy sends Rayna a check for $300 on which he has marked, "Payment in Full." If Rayna cashes the check she will NOT be able to successfully sue Billy for the remainder of the debt.

Answer 1

Answer:

False

Explanation:

The liability still remains in force unless the lender agrees to forfeit the balance of $2,700. Legally, the lender can sue the borrower to enforce her right in the court and be justified because she has not waived the outstanding liability owed to her.

As in the above case, the lender Rayna has not ignored the balance owed to her by Billy despite receiving $300 as being a full payment marked on the cheque.

This means that the balance of $2,700 is still outstanding against Billy and must be paid to the lender-Rayna because she has not waived the liability.