1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
babunello [35]
2 years ago
12

A debtor owed a creditor $1,200 on a promissory note that was due on August 1. After the debtor told the creditor that he might

not be able to pay the note on its due date, the creditor agreed to extinguish the debt if the debtor, who was the manager of a discount electronics store, bought a new entertainment system that sold for $1,200 and had it delivered to the creditor's home by August 15. Because the debtor would have to pay only $600 for the system due to his manager's discount, he agreed and the parties signed a written contract on July 26. Is the new agreement between the debtor and the creditor legally enforceable
Business
1 answer:
Ilya [14]2 years ago
6 0

Answer:

The correct option is C. Yes, because the debtor incurred a different obligation than he already had.

Explanation:

Note: This question is not complete as the options are omitted. The question is therefore completed before answering the question by providing the options as follows:

A. No, because the debtor incurred no additional detriment that would serve as consideration for the new agreement.

B. Yes, because it would have cost the creditor $1,200 to purchase the entertainment system himself.

C. Yes, because the debtor incurred a different obligation than he already had.

D. Yes, because the new agreement between the debtor and the creditor is enforceable with or without

Explanation of the answer is now provided as follows.

It is possible to enforce the two parties' new agreement as an accord.

An accord can be described as an agreement in which one party to an existing contract agrees to accept some other, different performance from the other party in lieu of the performance that the other party is obligated to provide. In principle, an agreement must be backed by payment, but the consideration can be less than the amount agreed upon in the preceding contract if it is of a different character or the claim is to be paid to a third party. The responsibility of the debtor to supply the creditor with a new entertainment system was enough fresh consideration to constitute a legal agreement in this case.

When a party's responsibility is modified in some way, as the debtor's duty was in this case, the preceding legal duty rule does not apply. It makes no difference whether the creditor's benefit in the accord arrangement is equal to the original debt's worth; courts will find appropriate consideration if the consideration is fresh or different in any way. The difference in the debtor's obligation, that is, payment is in the form of an entertainment system rather than cash) is enough to sustain the accord arrangement, regardless of how much the entertainment system would have cost the creditor.

The Uniform Commercial Code (UCC) does not apply because the original agreement was not for the sale of goods. The underlying commitment in this case was to pay a debt secured by a promissory note.

Therefore, the correct option is C. Yes, because the debtor incurred a different obligation than he already had.

You might be interested in
A manufacturer of disposable foam products entered into a written contract with a take-out restaurant to sell them 5,000 disposa
saveliy_v [14]

Answer:

Option B

Explanation:

Since the contract did not mentioned any thing about the retuning of containers that were not defective, it becomes the obligation of the buyer to pay the final delivery amount on the basis of Good-faith modification.

Hence, option B is correct

3 0
2 years ago
. Licensing occurs when: a. A licensee allows a licensor to use its intellectual property for a fee. b. A professional league pa
DedPeter [7]

Answer:

c. The owner of an intellectual property grants its use to a league in exchange for a fee.

Explanation:

Licensing occurs when: owner of an intellectual property grants its use to a league in exchange for a fee.

8 0
3 years ago
Read 2 more answers
Lillian Fok is president of Lakefront​ Manufacturing, a producer of bicycle tires. Fok makes 1 comma 000 tires per day with the
solniwko [45]

Answer:

Labor productivity= 2.35 tires per hour of work

Explanation:

Giving the following information:

Fok makes 1,000 tires per day with the following​ resources: ​

Labor: 425 hours per day ​at $12.50 per hour.

The labor productivity is calculated based on the number of units made divided by the amounts of hours required:

Labor productivity= 1,000/425= 2.35 tires per hour of work

8 0
3 years ago
Many gas stations with convenience stores sell gas at, or close to, cost. In these organizations, profit comes from the convenie
OLga [1]

Answer: build traffic.

Explanation:

The pricing model employed by such gas stations is built in a way to drive traffic. traffic is important and has an impact in many ways  1. low traffic can bog your business down at some level.

2. When you increase your traffic along with the quality of the visitors, the better you will be able to increase your sales.

traffic in this context refers to customers the more you are able to pull customers over the more sales you make.

4 0
3 years ago
A company purchased factory equipment on January 1, 2019 for $160,000. It is estimated that the equipment will have a $20,000 sa
Evgen [1.6K]

Answer:

10000

Explanation:

6 0
3 years ago
Other questions:
  • According to the dynamic version of the equation of exchange (as presented in the PowerPoint slides for Chapter 12), what will t
    11·1 answer
  • Prior to the 1870s, both gold and silver were used as international means of payment and the exchange rates among currencies wer
    11·1 answer
  • Which is an example of a withholding you might see on your pay stub?
    10·1 answer
  • Max works 40 hours per week as a tire store manager. If he made $25,480 last year, how much was he paid per hour?
    7·1 answer
  • To verify the quality and integrity of completed visuals ask yourself all of the following questions, except
    5·2 answers
  • Crane Company borrowed $1610000 from U.S. Bank on January 1, 2019 in order to expand its mining capabilities. The 5-year note re
    5·1 answer
  • What important role does management play in organizations?
    8·1 answer
  • Your company is building a new office site in a different state. You want to show your board members the progress of constructio
    13·1 answer
  • Labor costs charged to manufacturing overhead represent ______ labor costs.
    5·1 answer
  • In market economies, firms rarely worry about the availability of inputs to produce their products, whereas in command economies
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!