A Creditor's Agreement to Accept Part Payment as Full Settlement

question 1

Multiple Choice

A creditor's agreement to accept part payment as full settlement of a debt is enforceable

• A) at all times.
• B) if the creditor receives additional consideration from the debtor.
• C) when the due date is extended.
• D) in all of these cases.

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Definitions:

Trace Decay Theory

A theory of memory that proposes that memories leave a trace in the brain which fades over time unless it is actively retrieved.

Proactive Inhibition

The decrease in the ability to learn new information because previously learned information interferes with the new learning.

Retroactive Inhibition

The phenomenon where newer information interferes with the ability to recall older information.

Interference

A phenomenon where one's ability to learn or recall information is hindered by either the presence or the processing of other information.