In January, Dillon promised to pay Katron Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Katron agreed and accepted a $5,000 check from Dillon. Which of the following statements is correct?
a. This is an accord and satisfaction, and Katron cannot sue.
b. Katron's promise to refrain from suing Dillon was supported by legal consideration and is enforceable.
c. The courts would apply promissory estoppel in this situation.
d. Katron's promise to refrain from suing Dillon was not supported by legal consideration.
Answer: B
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