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.

Question

Quizplus · Accepted Answer

C is not an example of an exception to the rule regarding liquidated debt because if a debtor disputes the amount owed and pays a portion that the creditor accepts, it may not necessarily settle the entire debt unless there's an agreement indicating such. The other options involve accepting something of value other than the exact debt amount in full settlement, which can be seen as exceptions.

Which of the Following Is NOT an Example of the Exception