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MMLU / Collection of a debtor's …

Problem

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question

Collection of a debtor's 2,000debttoacreditorwasbarredbytheapplicablestatuteoflimitations.Thedebtorsoldanddeliveredhiscartoabuyerunderawrittenagreement,signedbythebuyer,inwhichthebuyerpromisedtopaythe2,000 debt to a creditor was barred by the applicable statute of limitations. The debtor sold and delivered his car to a buyer under a written agreement, signed by the buyer, in which the buyer promised to pay the 2,000 purchase price to the creditor "in satisfaction of [the debtor's] debt to [the creditor]." Can the creditor recover the $2,000 from the buyer?
Plain-text mathematical notation (without MathML)
Collection of a debtor's 2,000debttoacreditorwasbarredbytheapplicablestatuteoflimitations.Thedebtorsoldanddeliveredhiscartoabuyerunderawrittenagreement,signedbythebuyer,inwhichthebuyerpromisedtopaythe2,000 purchase price to the creditor "in satisfaction of [the debtor's] debt to [the creditor]." Can the creditor recover the $2,000 from the buyer?
Original LaTeX notation
Collection of a debtor's $2,000 debt to a creditor was barred by the applicable statute of limitations. The debtor sold and delivered his car to a buyer under a written agreement, signed by the buyer, in which the buyer promised to pay the $2,000 purchase price to the creditor "in satisfaction of [the debtor's] debt to [the creditor]." Can the creditor recover the $2,000 from the buyer?

choices

  1. No, because payment of the $2,000 to the creditor would undermine the statutory public policy against enforcement of stale claims.
  2. No, because the creditor's rights as an intended beneficiary are subject to any defenses available to the contracting parties between themselves.
  3. Yes, because the buyer's promise to pay $2,000 to the creditor is enforceable by the creditor regardless of whether the debtor was legally obligated to pay the creditor anything.
  4. Yes, because the buyer's promise to pay $2,000 to the creditor revived the uncollectible debt.

subject

professional_law

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