Asked by Osama Al-bahnasi on Jun 24, 2024
Verified
Recovery of Bud's debt to Credit Corporation is barred by a statute of limitations when Bud makes a partial payment. The creditor
A) needs new consideration to recover more than the partial payment.
B) can sue to recover the entire debt without consideration.
C) is estopped from asserting a right to recoup the rest of the debt.
D) can obtain no more on the debt due to the statute of limitations.
Statute Of Limitations
A federal or state statute setting the maximum time period during which a certain action can be brought or certain rights enforced.
Consideration
Something of value exchanged between parties in a contract, which is required for the agreement to be legally binding.
Estopped
Barred, impeded, or precluded.
- Identify the effect of legal doctrines such as the statute of limitations on agreements.
Verified Answer
ST
Samantha TapiaJun 28, 2024
Final Answer :
B
Explanation :
When Bud makes a partial payment on the debt, it typically indicates acknowledgment of the debt's existence. This acknowledgment can effectively reset the statute of limitations, allowing the creditor to sue for the entire remaining amount of the debt without needing new consideration.
Learning Objectives
- Identify the effect of legal doctrines such as the statute of limitations on agreements.
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