Breton owes Parkerson $750, which is due on June 1 . Discuss the sufficiency of consideration if Breton offers Parkerson: (a) $600 in full settlement on June 1 if the debt is undisputed; (b) $600 in full settlement on April 10 if the debt is undisputed; and (c) $500 on June 1 to settle the debt if the amount of the debt is validly disputed
The sufficiency of consideration is affected by whether the debt is disputed or undisputed and by the timing of the offered payment. (a) Under the common law, the payment of a lesser sum of money than is owed in consideration of a promise to discharge a fully matured, undisputed debt is legally insufficient to support the promise of discharge. (b) Consideration is sufficient in this case. Early payment constitutes a legal detriment to Breton as well as a legal benefit to Parkerson. The common law is not concerned with the amount of discount, since that is a question of adequacy of consideration. (c) Parkerson's promise to settle a validly disputed claim in exchange for the $500 payment is supported by consideration.
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