Etan is indebted to Finance Credit Corporation for $100,000. Etan agrees to pay, and Finance Credit agrees to accept, a lesser amount than the creditor originally claimed was owed. This agreement is
A)an accord.
B)a release.
C)a satisfaction.
D)an illusory promise.

Question

Quizplus · Accepted Answer

An accord is an agreement where a debtor and creditor agree to settle a debt for less than the amount originally owed.

Etan Is Indebted to Finance Credit Corporation for $100,000