Legal Advice: Gina Gigabyte on Accepting Sally Brine’s Offer

Business Law- Note repayment
Name Course Instructor Date
March 15, 2020
Gina Gigabyte
371 Nagle Avenue, Apt 6D, New York, NY
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RE: Legal Advice for Gina Gigabyte on whether to accept Sally Brine’s Offer
Dear Gina Gigabyte
The issue is whether Brine’s promise to accept $ 400,000 to satisfy $500,000 fully is enforceable when the promise is not in writing. A promise becomes legally binding and enforceable contract when there is exchange for adequate consideration. In a contract, there is an assumption that the parties discuss the scope of the obligation and there is an understanding of what constitutes a breach. Having borrowed $500,000 (interest-free) from Sally Brine payable on May 31, 2016, Sally now requests $ 400,000 by December 30, 2015, and the amount would be paid in full. However, Brine only stated this verbally and was not keen on writing a contract.The analysis focuses on whether the verbal agreement is a legally binding and enforceable contract and whether the promise not being in writing is a problem.
The verbal agreement is a promise that is enforceable and legally binding, just like written agreements with the elements of an agreement as there is a consideration and mutual assent. At the moment, the initial agreement to pay Brine $500,000 (interest-free) still stands and has not been terminated. However, if you go ahead and agree to pay the $ 400,000 by 30th December 2015 then the new agreement supersedes and extinguishes the old agreement to...