Your friend, Bob, has just borrowed $100 from you and offers to write up an I.O.U....

Your friend, Bob, has just borrowed $100 from you and offers to write up an I.O.U.

It reads:

July 1, 2019

I, Bob Smith, owe you $100.

And Bob signs the document.

Does this I.O.U. create a contract to repay a debt?

Expert Solution

An I.O.U. is a specific document which records a debt and is a form of an informarl agreement between two or more parties. The I.O.U. is not comprehesively legally binding and is very difficult to enforce. Also, it cannot be transferred or discounted like promissory notes or cheques. It is typically only used for record keeping and in books of accounts. The more specific an I.O.U. is , the more enforceable it can be as a contract.

Contract is a written or spoken agreement between two or more parties that is intended to be enforceable by law.

The I.O.U. signed with Bob creates an contract to repay the debt. Even though, this IOU has no due date and payment terms, but the missing elements are supplemented with the evidence of an agreement between two parties where Bob owes an amount and has signed on the same document.

jeff jeffy answered 2 years ago

You have borrowed $20 from a friend. He has forgotten about it, and you are certain...

You have borrowed $20 from a friend. He has forgotten about it, and you are certain he will never remember. In addition, your friend is well-off and will never miss it. To you, $20 means a lot. Describe what considerations the Kantian person would need to have in deciding whether to repay the debt.

Your friend Bob owns a 2019 Chevrolet Corvette. Your friend Bobnever lets you drive his...

Your friend Bob owns a 2019 Chevrolet Corvette. Your friend Bob never lets you drive his Corvette. Your friend Bob, does however, go out of town a lot. One day, Bob gives you a call and asks if you can drive him to Quincy Airport. Bob even agrees to let you drive the Corvette to take him to the airport. Wanting to get behind the wheel of Bob’s 2013 Corvette, you agree to drive Bob to the airport. The day...

Suppose your friend Eleanor offers you the following bet

5. Understanding risk aversion Suppose your friend Eleanor offers you the following bet: She will flip a coin and pay you $1,000 if it lands heads up and collect $1,000 from you if it lands tails up. Currently, your level of wealth is $3,000. The graph shows your utility function from wealth. Use the graph to answer the following questions. The shape of your utility function implies that you are a _______ individual, and, therefore, you _______ accept the wager becausethe difference...

Your friend Bob wants to starts an Italian restaurant and you decide to to invest in...

Your friend Bob wants to starts an Italian restaurant and you decide to to invest in it. Bob has full discretion over establishing and managing the business. On January 1, 2010, you gave Bob $150,000 to start the business at the beginning of 2010 in exchange for 10,000 shares and 20,000 common stock, respectively. Bob has agreed to receive a starting salary of $80,000 per year. Bob decided to focus on catering to local corporation, so he rented a space...

The Scenario: Your friend Bob asks you to sign a Change.org petition to encourage your Congressman...

The Scenario: Your friend Bob asks you to sign a Change.org petition to encourage your Congressman to propose a bill that would outlaw all stem cell research and treatments. The reason given for this petition is that embryonic stem cells come from aborted fetuses. Assignment: Write a response to your friend explaining what stem cells are and where they come from, making sure to clarify the factual misconception(s) in the petition. Your response needs to accurately explain stem cell biology...

Overview: You will write a program that reads up to 100 numbers from a file. As...

Overview: You will write a program that reads up to 100 numbers from a file. As you read the numbers, insert them into an array in ascending order. Specifics: 1A. Write a function called insertIntoSortedArray . i. It should take three arguments - a. myArray[ ] : sorted array that should be able to hold at most 100 integers. b. numEntries : the number of elements inserted so far. c. newValue : the incoming value to be inserted into the...

Your friend offers to pay you an annuity of $8,500 at the end of each year...

Your friend offers to pay you an annuity of $8,500 at the end of each year for 3 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

Alan offers, on day 1, to sell a book to Bob for $100. He then changes...

Alan offers, on day 1, to sell a book to Bob for $100. He then changes his mind and puts a revocation letter in the mail on day 2. Bob puts a letter in the mail on day 3 accepting the offer, and then on day 4 receives the revocation letter. The most accurate statement concerning the contract implications of this is Group of answer choices a contract has been formed on day 1 a contract has been formed on...

Your friend Jack offers you the opportunity to invest in his new business that sells the...

Your friend Jack offers you the opportunity to invest in his new business that sells the best lemonade in the world, or so he says. Jack says that there is a 60% chance that the investment will be worth $200,000 one year from today, and a 40% chance it won’t be worth anything. If you require a risk premium of 8% and T-bills are currently paying 4% per year, what price will you be willing to pay Jack for the...

You borrowed $1500 from a friend last year and promised to pay him at 5.5% annual...

You borrowed $1500 from a friend last year and promised to pay him at 5.5% annual real interest rate. Over the year, inflation turns out to be 1.5%. The amount of money you owe your friend this year is (please don't enter the $-sign in your answer):

Question