In Which of the Following Circumstances Is a Debt Settlement

question 65

Multiple Choice

In which of the following circumstances is a debt settlement a binding contract?

• A)Where the amount of the debt is uncertain or subject to dispute.
• B)Where the amount of the debt is certain and undisputed.
• C)Where the only consideration the creditor gives the debtor is his promise not to sue the debtor on the original debt.
• D)Where the settlement is part of a composition agreement.

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Definitions:

Variation

The occurrence of differences or discrepancies in characteristics, outcomes, or processes within or among entities or populations.

Degree

An academic rank conferred by universities or colleges upon completion of a course of study or the level of angle measured in degrees.

Standard Deviation

A statistical measure indicating the amount of variation or dispersion of a set of values from the mean (average) of the set.

Square Root

A value that, when multiplied by itself, gives the original number.