To Obtain an Extension of Time for the Payment of an Account

question 28

True/False

To obtain an extension of time for the payment of an account, a customer may issue a note for any portion of the amount due.

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Definitions:

Preexisting Duty

A legal principle that states a promise to do something that one is already legally obligated to do is not sufficient consideration for a new contract.

Unilateral Contract

A promise made by one party in exchange for the performance of a task or action by another party.

Past Consideration

A benefit already provided or an action already performed, which cannot legally constitute consideration for a current contract.

Consideration

A value that is exchanged between parties in a contract, making the agreement legally binding.