Able borrowed $10,000 from Baker,promising to return it with $1,000 interest on January 1,2006.There is no dispute that Able owes Baker $11,000 due on January 1,2006.On that day,Able gave Baker a valid check in the amount of $10,500 marked "payment in full for loan due January 1,2006." Baker accepted that check and deposited it into his account.If Baker then sues Able for the unpaid $500,what would the result be?
A)Able wins,because Baker accepted the lesser payment.
B)Able wins,because Baker made an implied promise to accept $10,500 as full payment,thereby forgiving $500 of the loan.
C)Baker wins,because Able gave no consideration in exchange for Baker's promise to forgive $500 of the loan.
D)Baker wins,because marking "payment in full" can never relieve a party of its original obligations under a contract.

Question

Quizplus · Accepted Answer

Baker is entitled to the $500 because Able has given no consideration to support Baker's implied promise to accept $10,500 as full payment.

Able Borrowed $10,000 from Baker,promising to Return It with $1,000