Asked by Melissa Quintanilla on May 21, 2024
Verified
Which of the following is true regarding an accord and satisfaction?
A) When amounts agreed upon are paid, the debt is fully discharged.
B) When amounts agreed upon are paid, the debt is fully discharged except for any late charges due on the initial indebtedness.
C) When amounts agreed upon are paid, the debt is fully discharged except for any interest due on the initial indebtedness.
D) When amounts agreed upon are paid, the debt is fully discharged except for any late charges and for any interest due on the initial indebtedness.
E) When amounts agreed upon are paid, the debt is fully discharged except for any late charges or interest due on the initial indebtedness, or attorney fees of the creditor that are due.
Accord and Satisfaction
A legal settlement where an agreement is made to satisfy a debt or claim, followed by the actual performance of this agreement, which discharges the original claim.
- Differentiate explicitly between liquidated and unliquidated debts and scrutinize their repercussions on accord and satisfaction.
Verified Answer
DM
Dayli Marrero PolancoMay 26, 2024
Final Answer :
A
Explanation :
An accord and satisfaction is a legal agreement between parties to settle a debt for less than is owed, and upon payment of the agreed amount, the debt is fully discharged.
Learning Objectives
- Differentiate explicitly between liquidated and unliquidated debts and scrutinize their repercussions on accord and satisfaction.