A Promise by a Creditor to Accept Less Than Full

question 39

Multiple Choice

A promise by a creditor to accept less than full payment from a debtor is

• A) unenforceable because the creditor did not provide consideration.
• B) enforceable because the promisee accepts the offer.
• C) a bilateral contract.
• D) enforceable because it gives rise to a contract.
• E) unenforceable because it is a gratuitous promise.

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Definitions:

Demand Volatility

Refers to the degree of unpredictability or fluctuations in consumer demand for products or services over time.

Agricultural Products

Goods produced through farming and cultivation of the land.

Farm Household

A household that is involved in agricultural activities, often residing on a farm where both living and farming activities take place.

Net Farm Income

The total income from agricultural activities after operating expenses and depreciation are subtracted.