In January,Alex promised to pay Y-K Inc.$5,000 if it would refrain from filing suit against him on a breach of contract action.Y-K agreed and accepted a $5,000 check from Alex.Which of the following statements is correct?
A)Y-K's promise to refrain from suing Alex was not supported by legal consideration.
B)Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.
C)This is an accord and satisfaction,and Y-K cannot sue.
D)The courts would apply promissory estoppel in this situation.

Question

Quizplus · Accepted Answer

Y-K's promise to refrain from suing Alex was supported by legal consideration, as Alex promised to pay $5,000 in exchange for Y-K refraining from suing him on a breach of contract action. This is a valid and enforceable contract. Option A is incorrect because legal consideration was present. Option C is incorrect as there is no indication that this is an accord and satisfaction. Option D is also incorrect as promissory estoppel is generally applied when there is no consideration, but in this case, consideration was present.

In January,Alex Promised to Pay Y-K Inc