Asked by Anthony Espino on Jun 27, 2024
Verified
Which of the following is a correct statement regarding whether an accepted offer to satisfy a debt by paying only part is consideration?
A) Partial payment is consideration under all circumstances.
B) Partial payment is not consideration under any circumstances.
C) Partial payment is consideration if a liquidated debt is involved.
D) Partial payment is consideration if an unliquidated debt is involved.
E) Partial payment is consideration,but only if a liquidated or unliquidated debt is involved.
Unliquidated Debt
A debt for which the exact monetary value has not been determined.
Consideration
Something of value exchanged between parties in a contract, required for the agreement to be legally binding.
Liquidated Debt
A debt for which the amount owed is known and agreed upon by both parties.
- Comprehend the principles and components involved in the formation of contracts.
- Distinguish between the enforcement of agreements regarding liquidated and unliquidated debts.
Verified Answer
KS
Kavalpreet Singh SidhuJun 29, 2024
Final Answer :
D
Explanation :
A dispute over an unliquidated debt may be settled for less than the full amount if the parties enter into an accord and satisfaction.
Learning Objectives
- Comprehend the principles and components involved in the formation of contracts.
- Distinguish between the enforcement of agreements regarding liquidated and unliquidated debts.
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