Which of the following should be the result in regard to Penny's obligation to Credit Card Company B?
A) That the company is not bound by its promise because the debt was liquidated.
B) That because Penny offered and the company accepted a different performance in discharge of the obligation, the company is bound.
C) That because the car is worth only $1,000, nowhere near the amount of the debt, the company is released from its promise.
D) That under equitable principles, upon disaffirming the agreement, Penny may keep the car, and the company must take a deduction of 50% on all amounts due.
E) That under equitable principles, upon disaffirming the agreement, Penny must transfer the car to the company, and the company must take a deduction of 50% on all amounts due after sums received from the sale of the car are credited to Penny's account.

Question

Quizplus · Accepted Answer

An exception to the rule that partial payment is not sufficient to discharge a liquidated debt occurs in the situation in which the debtor offers different performance.

Which of the Following Should Be the Result in Regard