This exercise is based on You Be the Judge 8.1.⁷ Igor works as a stockbroker for a company. Following procedures that he remembered reading in the companys official policy, he purchased $100 000 worth of shares on instructions from a client. Unfortunately, despite Igors repeated demands, the client refused to pay for those shares. Worse yet, during that time, the value of the shares dropped by 60 percent. Eventually, the company took control of the account, sold the shares for $40 000, and threatened to sue Igor for $60 000. In the companys view, the whole fiasco was Igors fault. He vigorously denied liability, but he was worried that a lawsuit would damage his professional reputation. He was also unable to find the policy document that he had relied on. He therefore agreed to pay $50 000 in exchange for the companys promise to drop the matter. Before actually making the payment, however, Igor located the lost document. It proved that he could not be held liable in the circumstances. An agreement not to sue someone (known as forbearance to sue) can be accepted as consideration for a contract, even though it can look like someone is making a threat and then withdrawing it. Under what circumstances, if any, should the courts reject forbearance to sue as consideration? 7. The facts are based on Stott v Merit Investments Inc (1988) 48 DLR (4th) 288 (Ont CA).