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Urgent!! Questions about consideration

Steven entered into a contract with Carol to sell her his van for $92,000. C asked S if he could reduce the price to $85,000, but S refuse her proposal immediately.

When he delivered the van to C, C told him that she could pay the van at $82000 as she has run into cash flow problems. C gave S an ancient coin valued $10000 in exchange for the promise. S accepted C's offer, and took the coin from C.

3 days later, S change his mind and request C to pay him outstanding $10000.

1. Can part of payment of a debt be satisfied with C's accord?

part of payment of a debt? ancient coins is new consideration? or not consideration?

S can get more $10000?

2. the legal issure between S and C in relation to consideration with the scope of law of contract.

1 Answer

Rating
  • Fion
    Lv 5
    1 decade ago
    Favorite Answer

    When Carol proposed to pay $82,000 to Steven, she still owed Steven $10,000. You may call it a debt of $10,000.

    Carol gave Steven an ancient coin valued $10,000 “in exchange for the promise”. You did not actually mention what promise had been exchanged but I have sassumed that the promise refers to the giving of the ancient coin by Carol in exchange for Steven’s agreement not to demand the outstanding sum of $10,000.

    If what I assumed is correct, then, Carol has given new consideration to Steven to satisfy the outstanding $10,000. Therefore, the price of the van in the sum of $92,000 was satisfied by the payment of $82,000 plus the ancient coin (i.e. new consideration).

    Since Steven accepted the new payment method by Carol, the outstanding $10,000 cannot be treated as a debt to Steven anymore. Carol had paid for that by means of an ancient coin. At the point of time when Carol told Steven that she could not afford to pay the balance of $10,000, a debt existed. However, such a debt was discharged subsequently by “accord and satisfaction”upon the payment by means of the ancient coin by Carol.

    In such a case, Steven was not entitled to demand $10,000 from Carol 3 days later. Steven had accepted the payment of $82,000 ancient coin as consideration for the van and he would be estopped from claiming that Carol still owed him $10,000.

    Issues involved: offer and acceptance, new consideration, part payment of a debt, promissory estoppel

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