Asked by
Dakota Wells
on Nov 21, 2024
Verified
Which of the following is NOT an example of the exception to the rule regarding liquidated debt?
A) A car owner offers her car to the bank as full settlement of the remaining balance owed on the loan and the bank accepts.
B) A student offers the use of his picture in a school brochure in full settlement of the $100 debt he owes to the university bookstore and the school accepts.
C) A debtor disputes the amount of money that is owed, so the debtor pays half of the debt and the creditor cashes the check.
D) A debtor offers a credit card company a rare book in full settlement of a $3,000 debt and the credit card company accepts.
E) None of the above choices are correct, since there are no exceptions to the rule regarding liquidated debt.
Liquidated Debt
A debt whose exact monetary value has been determined and agreed upon by all parties involved.
Exception Rule
A principle or regulation that specifies conditions under which an ordinary rule may not apply or may be altered.
Debtor Disputes
Disagreements that arise when a debtor challenges the validity, amount, or terms of a debt claimed by a creditor.
- Demarcate between liquidated and unliquidated debts and evaluate their respective impacts on the achievement of accord and satisfaction.
Verified Answer
MB
Learning Objectives
- Demarcate between liquidated and unliquidated debts and evaluate their respective impacts on the achievement of accord and satisfaction.