An Agreement Between Two Parties to Pay a Lesser Amount

question 14

Multiple Choice

An agreement between two parties to pay a lesser amount to settle an unliquidated debt is

• A)enforceable,as there is consideration.
• B)unenforceable,as there is no consideration.
• C)enforceable in only some states.
• D)unenforceable as a violation of public policy.

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Definitions:

California

A U.S. state on the west coast, known for its diverse geography, significant economic contributions, and cultural impact.

Economic Freedom

The ability of individuals and businesses to make their own economic decisions without undue government intervention, including property rights, free trade, and access to markets.

Gold Discovery

generally refers to the finding of gold resources, notably the California Gold Rush of 1849 which led to massive migration and economic expansion.

Seceding

The act of formally withdrawing from an organization, union, or especially a federation of states, such as the Southern states seceding from the Union leading to the Civil War.