Ron owes Matt an unsecured debt of $3,000. Ron has a discharge of all his unsecured debts by a bankruptcy court. Can the contract between Matt and Ron be reinstated?
Yes, the contract can be reinstated if Ron acknowledges that he has had his debt discharged and then makes a promise to Matt to pay regardless of that fact. A promise to pay a debt that has been discharged in bankruptcy is enforceable without consideration. However, the Bankruptcy Act imposes a number of requirements before a promise to pay a debt discharged in bankruptcy may be enforced.
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The cost of internal common equity is already on an after-tax basis since dividends paid to
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A. adjourning B. performing C. forming D. norming E. storming