Darren owes Carl a past-due undisputed debt of $600. Darren sees Carl in a restaurant and pays him $500. Carl then says to Darren , "Forget about the other $100 you owe me. I'm glad to get the $500." Carl 's promise to discharge the remainder of the debt is binding.

Question

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Carl's promise to discharge the remainder of the debt is not binding because there is no consideration for Carl's promise to forgive the $100. In a situation involving a past-due undisputed debt, payment of a lesser sum (here, $500 of the $600) does not discharge the debtor from the full amount unless there is some new consideration or a written agreement to that effect.

Darren Owes Carl a Past-Due Undisputed Debt of $600