Question

In September 2021, Alina borrowed RM5,000 from Baba to purchase a laptop. Alina promised to repay the loan within eight months. Later on, Alina was unable to repay the full amount of RM5,000 and could only afford to pay RM3,000. Baba then agreed to accept RM3,000 from Alina in full settlement of the debt after getting to know that Alina’s husband had just passed away in a car accident and Alina is in difficulty managing her finances. Alina promptly paid the amount of RM3,000 to Baba. However, Alina was shocked when she received an email from Baba last week requesting the balance of the loan, amounting to RM2,000.

Advise Alina on the validity of Baba’s claim for the balance of RM2,000.

Answer 1

Based on the information provided, it appears that Baba and Alina had a verbal agreement for a loan of RM5,000 with a repayment period of eight months. When Alina was unable to repay the full amount, Baba agreed to accept RM3,000 in full settlement of the debt. This agreement, known as a "novation," effectively replaces the original loan agreement with a new agreement in which the outstanding balance of RM2,000 is forgiven.

Once the RM3,000 was paid by Alina, the debt is considered as fully discharged and Baba cannot claim the remaining balance of RM2,000. Alina can show the email or other evidence of the agreement to forgive the remaining balance as proof that the debt has been fully settled.

It's important to note that the above information is based on the facts provided and it is always best to consult a licensed attorney for legal advice.

Step-by-step explanation: