Asked by
Elyssa Garcia
on Nov 21, 2024Verified
Assuming no exception applies, which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is a dispute over the amount of the debt, and the creditor agrees?
A) A liquidated debt is involved, and there is an accord and satisfaction.
B) A liquidated debt is involved, and there is an accord but no satisfaction.
C) A liquidated debt is involved, and there is neither a satisfaction nor an accord.
D) An unliquidated debt is involved, and there is an accord and satisfaction.
E) An unliquidated debt is involved, and there is an accord but not satisfaction.
Liquidated Debt
A debt whose amount has been determined and acknowledged by both the debtor and the creditor.
Accord And Satisfaction
A legal contract wherein a dispute is settled by the parties agreeing and performing on a new obligation which differs from the original agreement.
Unliquidated Debt
Debt for which the specific value has not been determined, often because the exact amount depends on future events or conditions.
- Understand the key legal concepts involved in resolving disputes over debt payments, including the difference between liquidated and unliquidated debts, and accord and satisfaction.
Verified Answer
DG
Learning Objectives
- Understand the key legal concepts involved in resolving disputes over debt payments, including the difference between liquidated and unliquidated debts, and accord and satisfaction.