Khalid Owes Jill $60 000 and He Has to Repay

Multiple Choice

Khalid owes Jill $60 000 and he has to repay it by June 30.On May 10,he learns that Jill is desperate for money.Khalid only has $30 000,but offers to pay that amount to her the next day,May 11,in exchange for forgiveness of the debt.Which of the following is true?

A) Even if she takes the money,Jill is still entitled to the full amount because there is no new consideration.
B) If she takes the money,the debt is paid because Khalid offered new consideration.
C) Even if she takes the money,she is entitled to the full amount because of section 16 of the Mercantile Law Amendment Act.
D) If she takes the money,despite the lack of new consideration,the debt is paid because of section 16 of the Mercantile Law Amendment Act.
E) The debt will only be forgiven if Khalid changes the method of payment to cheque rather than cash.