Required information [the following information applies to the questions displayed below.] greener pastures corporation borrowed $1,600,000 on november 1, 2018. the note carried a 12 percent interest rate with the principal and interest payable on june 1, 2019. (a) the note issued on november 1. (b) the interest accrual on december 31. indicate the effects of the amounts for the above transactions. (enter any decreases to assets, liabilities, or stockholders equity with a minus sign. do not round intermediate calculations.)

This exception is usually justified on the basis of either promissory estoppel or public policy.

Explanation:

There are many Judicial devices and one of them is the Estoppel. In common law, there are legal systems which allow a court to use this device to prevent a person (corporate or individual) from making pronouncements or from defecting on their promise.

With regard to public policy, courts in recent cases have reached conclusions that pledges are legally enforceable regardless of whether or not the recipient of the promise has incurred liabilities based on the pledge, and that, the only way to ensure compliance with requirements of the law, a test of public policy is to ensure the promise is made good.

This thought holds true in Ohio where for example, a pledge has the same weight as a promissory note.

According to precedence established in Pennsylvania, any written promise can be enforced regardless of whether or not the pledger intends to be legally bound.

Cheers!