An Agreement to Pay a Lesser Amount to Settle an Unliquidated

question 18

Multiple Choice

An agreement 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.

---

Definitions:

Assignment

The act of transferring rights or duties under a contract to another party.

Equity Bank

A financial institution that offers banking services with a focus on equity financing, or alternatively, a bank that has equity in other companies.

Payee's Bank

The bank where the recipient of a check or electronic payment has an account, responsible for processing and clearing the payment.

Holder

An individual or entity that legally possesses a negotiable instrument, such as a check, bill of exchange, or promissory note, and has the right to receive the amount specified therein from the payer.