Assuming no exception applies, which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is a dispute over the amount of the debt, and the creditor agrees?
A) A liquidated debt is involved, and there is an accord and satisfaction.
B) A liquidated debt is involved, and there is an accord but no satisfaction.
C) A liquidated debt is involved, and there is neither a satisfaction nor an accord.
D) An unliquidated debt is involved, and there is an accord and satisfaction.
E) An unliquidated debt is involved, and there is an accord but not satisfaction.

Question

Quizplus · Accepted Answer

An unliquidated debt is one where the amount owed is in dispute. When the debtor offers to pay less than the full amount and the creditor agrees, this constitutes an "accord" (the agreement) and "satisfaction" (the execution of the agreement), resolving the dispute.

Assuming No Exception Applies, Which of the Following Is True