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.

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.