Ann paid 150 and stated to barry that all claims had been


a. Ann owed $500 to Barry for services Barry rendered to Ann. The debt was due June 30, 2007. In March 2008, the debt was still unpaid. Barry was in urgent need of ready cash and told Ann that if she would pay $150 on the debt at once, Barry would release her from the balance. Ann paid $150 and stated to Barry that all claims had been paid in full. In August 2008, Barry demanded the unpaid balance and subsequently sued Ann for $350. Result?

b. Modify the facts in (a) by assuming that Barry gave Ann a written receipt stating that all claims had been paid in full. Result?

c. Modify the facts in (a) by assuming that Ann owed Barry the $500 on Ann's purchase of a motorcycle from Barry. Result?

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Management Theories: Ann paid 150 and stated to barry that all claims had been
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