You Might Find Yourself Obligated to Pay an Entire Debt

question 104

Multiple Choice

You might find yourself obligated to pay an entire debt in full if you miss several payments because of the ____ clause found in most installment loan contracts.

• A)Lien
• B)acceleration
• C)cosigner
• D)mortgage

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Definitions:

Punitive Damages

Monetary compensation awarded in a lawsuit that goes beyond what is necessary to compensate the plaintiff and is intended to punish the defendant for particularly egregious conduct.

Gross Negligence

An action committed with extreme reckless disregard for the property or life of another person.

Duty To Render

Is the obligation to provide a service or perform specific tasks under a contract or legal agreement.

Conscious Negligence

A situation where an individual is aware of the potential harm their lack of care or failure to act might cause, but disregards the risks.