Cengage Advantage Books: Fundamentals of Business Law 9th Edition by Roger LeRoy Miller

Exercise 9

Consideration. In March 1997, Leonard Kranzler loaned Lewis Saltzman $100,000. Saltzman signed a written memo that stated, "Loaned to Lewis Saltzman $100,000 to be paid back with interest." Saltzman made fifteen payments on the loan, but these payments did not cover the entire amount. The last ten years after the date of the loan but less than two years after the date of the last payment-Kranzler filed a suit in an Illinois state court against Saltzman, seeking to recover the outstanding principal and interest. Saltzman admitted that he had borrowed the funds and had made payments on the loan, but he claimed that Kranzler's complaint was barred by a ten-year statute of limitations. Does Kranzler need to prove a new promise with new consideration to collect the unpaid debt? Explain. [ Kranzler v. Saltzman, 347 Ill.Dec. 519, 942 N.E.2d 722 (1 Dist. 2011)]