Parker Inc promised to pay $100 000 cash to Coltrane Ltd in exchange for a shipment of widgets.The widgets were delivered on October 1st and the price was to be paid on October 15.On October 13,Parker informed Coltrane that it would not be able to afford to pay any more than $75 000.Which of the following statements is TRUE?
A) Coltrane will be able to recover the full contract price even if it promises under seal to accept $75 000 in complete satisfaction of Parker's debt.
B) Coltrane will not be able to recover the full contract price if it agrees to accept $75 000 from Parker to be paid on October 14 in complete satisfaction of the $100 000 debt,that was to be paid on October 15.
C) If the parties are located in Alberta,Ontario,British Columbia,Manitoba,the Northwest Territories,Nunavut,Saskatchewan,or the Yukon,Coltrane will be able to recover the full contract price even if it has accepted Parker's offer to pay $75 000 in complete satisfaction of the $100 000 debt.
D) Coltrane will be able to recover the full contract price even if it accepts Parker's offer to satisfy the $100 000 debt by both paying $75 000 in cash and delivering a used truck to Rollins Corp,which is another company with which Coltrane has close ties.
E) There is no mutuality of consideration,and therefore the contract is invalid,because Coltrane actually delivered the widgets before Parker was required to pay the purchase price.
Correct Answer:
Verified
Q24: Which of the following rules applies to
Q25: Mohana promised Ian that she would pay
Q26: Which of the following statements is TRUE?
A)The
Q27: Which of the following propositions is TRUE
Q28: Which of the following statements is TRUE?
A)An
Q31: Dunlop sold tires to Mew.The parties' contract
Q32: Which of the following situations illustrates a
Q33: Bentley Inc operates a sporting goods store.In
Q34: Rande promised to provide a series of
Q34: Which of the following situations most likely
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents