D owes C a past-due undisputed debt of $500.D sees C in a bar and pays him $400.C then says to D, "Forget about the other $100 you owe me.I'm glad to get the $400." C's promise to discharge the remainder of the debt is binding.

Question

Quizplus · Accepted Answer

In general, a promise to discharge a debt is not binding unless there is consideration. Since the debt was undisputed and D only paid part of it, C's promise to forgive the remaining $100 lacks consideration and is not binding.

D Owes C a Past-Due Undisputed Debt of $500