Asked by Jordan Novak on Apr 29, 2024
Verified
The settlement of an unliquidated debt is called a(n) :
A) forbearance to sue.
B) accord and satisfaction.
C) past consideration.
D) moral obligation.
Unliquidated Debt
A debt for which the exact amount owed has not been determined or agreed upon.
Accord And Satisfaction
A legal contract wherein parties agree to a settlement that conclusively resolves a dispute or debt.
Forbearance To Sue
An agreement to refrain from filing a lawsuit as part of a negotiation or compromise, despite having grounds for legal action.
- Differentiate between settled and unsettled financial obligations and their consequences for consideration.
Verified Answer
NK
Nishal KulkarniMay 06, 2024
Final Answer :
B
Explanation :
The settlement of an unliquidated debt is called an accord and satisfaction.
Learning Objectives
- Differentiate between settled and unsettled financial obligations and their consequences for consideration.
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