Larry owed Rusty a $3,000 debt that is past due. In a telephone conversation, Kathy orally promised Rusty that in exchange for Rusty's promise to extend the time for payment 30 days, she would pay the $3,00 if Larry didn't make the full payment. Three months have passed. Rusty still cannot collect from Larry and now is suing Kathy on her promise made in the telephone call. Can Rusty recover?
Larry owed Rusty a $3,000 debt that is past due. In a telephone conversation, Kathy orally promised Rusty that in exchange for Rusty's promise to extend the time for payment 30 days, she would pay the $3,00 if Larry didn't make the full payment. Three months have passed. Rusty still cannot collect from Larry and now is suing Kathy on her promise made in the telephone call. Can Rusty recover?
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 30P
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Transcribed Image Text:Larry owed Rusty a $3,000 debt that is past due. In a telephone
conversation, Kathy orally promised Rusty that in exchange for Rusty's
promise to extend the time for payment 30 days, she would pay the $3,000
if Larry didn't make the full payment. Three months have passed. Rusty still
cannot collect from Larry and now is suing Kathy on her promise made in
the telephone call. Can Rusty recover?
O Yes.
O No.
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