When a Debtor Tender a Check Stating "Paid in Full

question 44

Multiple Choice

When a debtor tender a check stating "paid in full" and the creditor cashes the check,the debt:

• A) is always discharged.
• B) may be discharged if it is a liquidated debt.
• C) may be discharged if it is a unliquidated debt.
• D) is never discharged.

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Definitions:

Appellate Court

A higher court that reviews the decisions of lower courts to determine if legal errors were made that could change the outcome of a case.

Fraudulent Transactions

Financial transactions made with the intention of deceiving or defrauding others.

ATM Card

A plastic card issued by a bank, allowing the cardholder to withdraw cash, make deposits, or access account information at Automated Teller Machines.

Fraudulent Charge

Unauthorized transaction on a payment card or account, made without the owner's permission.