What Can a Business Do to Protect Itself from a Debtor's

question 68

Multiple Choice

What can a business do to protect itself from a debtor's attempt to create an accord and satisfaction by sending the creditor a check with "paid in full" written on it?

• A) Nothing. Businesses must carefully review every check to avoid inadvertently creating an accord and satisfaction.
• B) Issue only liquidated debts to debtors and include provisions in credit card statements prohibiting the issuance of unliquidated debt.
• C) Rely on the doctrine of promissory estoppel to ensure such checks are not valid.
• D) Notify debtors that any attempt to settle a claim for less than the amount owed must be sent to a particular address and/or a particular person.
• E) Sue the debtor for the remaining balance and argue there was insufficient consideration because there was no bargained-for exchange when the check was sent "Paid in Full."

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Definitions:

Safety Hazard

A condition that has the potential to cause injury, illness, or harm to people, property, or the environment.

Fire Sprinklers

A component of a fire suppression system that discharges water when the effects of a fire have been detected, such as when a predetermined temperature has been exceeded.

Nursing Care Facility

A place of residence for individuals who require constant nursing care and have significant deficiencies with activities of daily living.

Assessing Clients

The process of evaluating the needs, conditions, and circumstances of clients, typically in a healthcare, social work, or coaching context to provide appropriate services or interventions.