Asked by Matias Morales on Jul 08, 2024
Verified
What is Credit Card Company A's best argument in relation to enforcing Isabella's obligations?
A) That the agreement constituted a bad deal for the card company.
B) That only past consideration was involved.
C) That student debt is not dischargeable as a matter of law and that the card company owed no obligation to Isabella regardless of statements made.
D) That its promise was clearly an illusory promise that Isabella should have known could not be enforced once the card company discovered the true circumstances.
E) That no consideration existed for its promise, and that based on Isabella's circumstances and behavior, enforcing the debt would not result in injustice to Isabella.
Illusory Promise
Describes a statement or agreement that appears to be a promise but is too vague or has terms that allow the promisor to avoid any real obligation.
Consideration
Something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.
Student Debt
Loans accumulated through financing higher education, often a significant financial burden for graduates.
- Gain an understanding of the core legal theories involved in managing disputes around debt payments, including identifying the differences between specified and unspecified debts, and negotiation and satisfaction.
- Ascertain when the invocation of a promissory estoppel claim is warranted in cases of contractual contention.
Verified Answer
SN
Sarah NiumeitoluJul 11, 2024
Final Answer :
E
Explanation :
Credit Card Company A's best argument is that no consideration existed for its promise to accept $50 as payment in full. In contract law, consideration refers to something of value that is exchanged between the parties. Isabella's promise to pay $50, when she already owed more, does not constitute new consideration. Additionally, the argument would be that enforcing the original debt would not result in injustice to Isabella, as she incurred the debt under the original terms agreed upon.
Learning Objectives
- Gain an understanding of the core legal theories involved in managing disputes around debt payments, including identifying the differences between specified and unspecified debts, and negotiation and satisfaction.
- Ascertain when the invocation of a promissory estoppel claim is warranted in cases of contractual contention.