On January 1, 2006, Bev owed City Bank $5,000 on her car loan. The loan was due in May 2006. On January 1, 2006, Bev sent the bank a check for $4,800 marked "In full payment for any and all claims City Bank has against me." City Bank cashes the check. Under these circumstances, _____.

Question

Quizplus · Accepted Answer

When City Bank cashes the check, it impliedly promises to accept it as full payment by cashing it. Also, since Bev paid early (before the loan contract called for payment), she has given consideration and can enforce the promise. Thus, in this scenario, Bev can avoid paying the $200.

On January 1, 2006, Bev Owed City Bank $5,000 on Her