[Car Trouble] Jennifer wants to sell her car and Timmy agrees to purchase it. Jennifer and Timmy become involved in an over-the-phone negotiation and settle on a price of $1,000. Jennifer lives three hours from Timmy but agrees to deliver the car to him in his home state and take the bus back, provided Timmy promises to purchase the vehicle. She drives three hours. Upon arrival, Timmy says he will not purchase the vehicle unless Jennifer agrees to go to the dealer, get a second set of $500 SmartKeys, and mail the keys to Timmy within three weeks. Having driven all that way, Jennifer agrees. Timmy gives Jennifer the $1,000, using money he borrowed from Joe and promised to repay. Jennifer accepts the money and leaves. Jennifer never sends Timmy the second set of keys. Timmy later decides the car is worth only $500. He decides not to pay Joe and instead gives the vehicle to Joe, explaining his plan. Joe accepts the car and drives away, secretly planning to sue Timmy for the rest of the money. When Timmy is sued by Joe, he makes a claim against Jennifer and claims she should have to compensate him for losses because they never had a valid contract since the car was not worth the $1,000 Jennifer claimed it was.
-Was Timmy's debt to Joe liquidated or unliquidated debt after Timmy bought the car and subsequently decided it was worth less than what he had borrowed to pay for it?
A) Liquidated debt, because there was no dispute that he owed money or how much.
B) Liquidated debt, because the debt was not supported by consideration.
C) Unliquidated debt, because there was a dispute over how much was owed.
D) Unliquidated debt, because there was disagreement about the car's value.
E) Unliquidated debt, because the debtor offered different performance.
Correct Answer:
Verified
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