In January, Alex promised to pay Y2K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y2K agreed and…

In January, Alex promised to pay Y2K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y2K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct? a. Y2K’s promise to refrain from suing Alex was not supported by legal consideration. b. Y2K’s promise to refrain from suing Alex was supported by legal consideration and is enforceable. c. This is an accord and satisfaction, and Y2K cannot sue. d. The courts would apply promissory estoppel in this situation.