Several years ago, a lender lent a borrower $1,000, and the…
Several years ago, a lender lent a borrower $1,000, and the parties agreed in writing that the borrower would repay the lender within one year. The borrower failed to repay the lender, but the lender took no action prior to the expiration of the five-year statute of limitations on suits for debt. Some time after that, the lender phoned the borrower and told him, “If you’ll pay me$600 now, I’ll forget all about that unpaid $1,000 debt.” The borrower agreed orally and then sent the lender a signed letter, which stated, “I, the borrower, agree to pay the lender $600.” The borrower never paid the lender the $600 and the lender sued the borrower shortly thereafter. What is the lender entitled to recover?