Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 5

In 1974 Spiklevitz loaned money to the Herons. The Herons signed a note, promising to repay $4,800 by January 15, 1975. In 1980 the Herons sold their business to the Markmill Corporation. In conjunction with the sale, Markmill signed an "Assumption of Obligation" in which it agreed to assume and pay debts of the business. The outstanding balance of $3,510 still owed to Spiklevitz was listed as one of these debts. When Markmill failed to pay, Spiklevitz sued. Can Spiklevitz collect the debt from Markmill?