Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 9

Robert Lawlor was an officer of K-Brew Inc. K-Brew owed money to Allen Foods Inc. Lawlor wrote out four personal checks to Allen, but they bounced. Timothy Mahoney, credit manager for Allen, dealt with the police in seeking to arrest Lawlor for passing the bad checks. Lawlor signed a note to pay K-Brew's debt over time, so in return for the note, Allen dismissed the criminal charges with the police. When Lawlor did not continue to make payments on the note, Allen sued him for payment. Was this agreement to pay enforceable?