Recovery of Bud's debt to Credit Corporation is barred by a statute of limitations when Bud makes a partial payment. The creditor
A)needs new consideration to recover more than the partial payment.
B)can sue to recover the entire debt without consideration.
C)is estopped from asserting a right to recoup the rest of the debt.
D)can obtain no more on the debt due to the statute of limitations.

Question

Quizplus · Accepted Answer

When Bud makes a partial payment on the debt, it typically indicates acknowledgment of the debt's existence. This acknowledgment can effectively reset the statute of limitations, allowing the creditor to sue for the entire remaining amount of the debt without needing new consideration.

Recovery of Bud's Debt to Credit Corporation Is Barred by a Statute