Daniel Owes Casey a Debt,the Amount of Which Is Subject

question 87

Multiple Choice

Daniel owes Casey a debt,the amount of which is subject to a good faith dispute.The parties agree to settle the debt,with Daniel promising to pay Casey $15,000 and Casey promising to release Daniel on a $25,000 debt.The settlement agreement:

• A)is supported by consideration.
• B)lacks consideration because Casey is not giving Daniel any legal value.
• C)lacks consideration because Daniel is promising to perform a preexisting legal obligation.
• D)is binding under UCC section 2-209 even though there is no consideration.

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Definitions:

Marginal Benefit

The additional satisfaction or utility that an individual gains from consuming one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a good or service, critical for decision-making on production and pricing.

Benefit of Abatement

This refers to the advantages or positive effects derived from reducing or eliminating negative environmental impacts or pollutants.