Fernando Owes Lucia $8,000

question 193

Multiple Choice

Fernando owes Lucia $8,000. They both realize he is unlikely to be able to repay that much, so Lucia says: "Pay me $5,000 and we'll call it good." Fernando pays the $5,000. This settlement is called:

• A) preexisting duty
• B) liquidated debt
• C) unliquidated debt
• D) accord and satisfaction
• E) detrimental reliance

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Definitions:

Co-Custody

A situation where two parties share legal responsibility and authority for the care and upbringing of a child.

Physical And Legal Custody

Terms that refer to the physical residence of a child and the legal right to make decisions regarding the child's upbringing, respectively.

Custody

A court-mandated ruling regarding which divorced parent will have the primary responsibility for the children’s upbringing.

Separation Agreement

A legal document that outlines the terms of a separation between married or common-law partners, detailing arrangements such as asset division, child custody, and support payments.