Business Law 1 Business Law 1 Please help with this business law assignment Home
ID: 2817046 • Letter: B
Question
Business Law 1 Business Law 1 Please help with this business law assignment Homework assignment for Week 4 1. Ann owed $2,500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2011. In March 2012, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $1,500 on the debt at once, Barry would release her from the balance. Ann paid $1,500 an stated to Barry that all claims had been paid in full. In August 2012, Barry demanded the unpaid balan and subsequently sued Ann for $1,000. Result? Please explain.Explanation / Answer
Issue : Issue here is payment of undisputed debt
Rules : Rule of common law of contract will apply here.
Application : Common laws provides that in case payment of less amount of money will not release debtor to fulfill its promise to pay remaining money. In our case Ann need to pay $ 2500 and paid only $1500 and still amount of $1000 need to pay. Even though Barry told Ann to pay $1500 at once and Barry would release her from the balance will not provide any benefit to Anna. Barry can make Anna to pay the remaining amount.
Conclusion : As per common law of contract Anna will not have any benefit of this transaction and would liable to pay another $1000 to Barry .
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