1. Ellen borrowed money from RBC. The promissory note she signed set out the interest rates and terms of payment. Ellen was unable to make those payments a year later and re-negotiated the terms with RBC. She signed a new note with the new interest rate and terms of payment. After six months she was unable to make those payment and RBC filed suit against her under the original promissory note. She raised the defense that the original agreement had been discharged by the execution of the second note and could not be sued upon. Is she right? Why or why not?

2. In February, Christine made a contract with a roofer to replace her roof by March 15, 2013. The roofer never showed up to replace the roof and a severe thunderstorm came through. Heavy rains and wind damaged the outer and interior of the home. Christine sued the roofer for breach of contract and claimed damages for the damage done to the outer and interior of her home. Is she entitled to these damages? Why or why not?

3. Jason makes a contract to sell a one-of-a-kind silver and garnet pendant to Kayla for $15,000. The written contract specifies that if Jason should fail to perform the contract he will pay Kayla $1500 as liquidated damages. Of course Jason fails to deliver the pendant and Kayla sues him for the $1500. Will Kayla be successful in her suit? Why or why not?