What Can a Business Do to Protect Itself from a Debtor's

question 32

Multiple Choice

What can a business do to protect itself from a debtor's attempt to create an accord and satisfaction by sending the creditor a check with "paid in full" written on it?

• A)Rely on the doctrine of promissory estoppel to ensure such checks are not valid.
• B)Issue only liquidated debts to debtors and include provisions in credit card statements prohibiting the issuance of unliquidated debt.
• C)Sue the debtor for the remaining balance and argue there was insufficient consideration because there was no bargained for exchange when the check was sent "Paid in Full."
• D)Nothing.Businesses must carefully review every check to avoid inadvertently creating an accord and satisfaction.
• E)Notify debtors that any attempt to settle a claim for less than the amount owed must be sent to a particular address and/or a particular person.