Gabrielle Is Three Months Behind on Her Mortgage, and Her

Multiple Choice

Gabrielle is three months behind on her mortgage, and her lender filed negative information affecting her credit rating. Gabrielle mailed one monthly payment to the lender along with a letter stating that she was making the payment on the condition that the lender remove negative material sent to credit reporting agencies affecting her credit rating. The lender cashed the check but did not remove the negative information. Gabrielle sues the bank for breach of contract. Which of the following is the most likely result?

A) The bank will win because under the preexisting duty rule, Gabrielle was already legally obligated to make the payment, and there was no consideration to support the contract.
B) The bank will win because under federal law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful.
C) The bank will win because under state law, once correct negative information is reported regarding a customer, it can be removed only if it is found to be untruthful.
D) Gabrielle will win because the bank's cashing the check constituted acceptance of her offer, and a valid contract existed.
E) Gabrielle will win because the bank had an obligation to notify her that it was not accepting her offer before cashing the check.