Which of the Following Statements Is True About Unliquidated Debts

question 13

Multiple Choice

Which of the following statements is true about unliquidated debts?

• A) As the amount is due and certain, a promise to pay less lacks consideration.
• B) All courts allow collection of the remainder if checks marked "payment in full" are cashed without reservation.
• C) As the amount is genuinely in dispute, an agreement resulting in accord and satisfaction is enforceable.
• D) Composition agreements are an exception to unliquidated debts and can be enforced without additional consideration.

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Definitions:

Promise

An assertion or commitment to perform a certain action or to ensure an event takes place.

Adequacy Of Consideration

In contract law, the fairness of the compensation or value exchanged in a contractual agreement, ensuring it is both lawful and substantial enough to enforce the contract.

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive market.

Claims Of Creditors

Rights or entitlements that individuals or entities have to demand payment or other remedies from a debtor as per the legal agreements.