A Promise to Pay for an Act That Has Already

question 37

True/False

A promise to pay for an act that has already occurred is enforceable.

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Definitions:

Collateral

Collateral is an asset or property that a borrower offers to a lender as security for a loan, which can be seized by the lender if the loan is not repaid according to the agreement.

Enforceable

Describes a legal agreement or contract that can be upheld and compelled by law, ensuring compliance by all parties involved.

Termination Statement

A document filed to indicate that a previously filed security interest is no longer valid.

Filing

The process of submitting documents to a specified entity or office for official recording and recognition.