Monday, September 9, 2019

Case Study Analysis Example | Topics and Well Written Essays - 1500 words - 3

Analysis - Case Study Example He was also to pay the interest with respect to terms of the interest of 12% as they had agreed. Sue has every right under the law of pursuing the money Peter owes her. According to the terms of their agreements, Peter was supposed to clear Sue’s debt by 1st of July. Since the date that Peter was expected to settle the debt had come, Sue had a legal right to request Peter to pay the cash he owed Sue (Emerson 2004, p.18). Similarly, Peter had the responsibility of honoring the terms of their agreement. If Peter would fail to honor this agreement, Sue has a legal right to pursue Peter to settle the debt through the legal processes. However, it was wise for Sue to contact Peter and ask him to settle the debt. If Peter fails to honor the agreement, Sue has every right and ground to follow the legal process so that she can be paid her debt. The legal process entails even suing Peter. The bottom line of this issue is Sue as the lender has every right to request Peter to settle the remaining debt (MacIntyre 2010, p.13). Similarly, Peter has the responsibility of honoring their agreement by paying Sue 5,000 that remained as well as the interest. On this scenario, Peter has repaid Sue the sum of 25,000 only. This implies that he has paid the principal amount only less the interest. This is contrary to their agreement. Peter was supposed to pay both the principal amount and interest on 1st July. This implies that he has breached the agreement they had made. As per the rights of the lender encompassed in the common business law, an agreement is a contract (Keenan and Riches 2009, p.37). Once the two have entered in a contract, it is unlawful to breach the contract. Peter failing to pay the interest is breaching the contract between him and Sue. According to the common business laws, breaching of a contract is an offense. This is implies that when it comes to contract breaching one is liable of facing the

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