Reference no: EM131386923
On June 15, 2002, Joanne, for consideration, executed a negotiable promissory note for $10,000, payable to Robert on or before June 15, 2010. Joanne subsequently suffered financial reverses.
In January 2010, Robert, on two occasions, told Joanne that he knew she was having a difficult time, that he, Robert, did not need the money, and that the debt should be considered completely canceled with no other act or payment being required. These conversations were witnessed by three persons, including Larry.
On March 15, 2010, Robert changed his mind and indorsed the note for value to Larry. The note was not paid by June 15, 2010, and Larry sued Joanne for the amount of the note.
Joanne defended on the ground that Robert had canceled the debt and renounced all rights against Joanne and that Larry had notice of this fact. Has the debt been properly canceled? Explain.
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