An agreement to pay a lesser amount to settle an unliquidated debt is:
A) enforceable, as there is consideration.
B) unenforceable, as there is no consideration.
C) enforceable in only some states.
D) unenforceable as a violation of public policy.

Question

Quizplus · Accepted Answer

An agreement to pay a lesser amount to settle an unliquidated debt is enforceable as there is consideration. The creditor is giving up the right to collect the full amount owed, and the debtor is providing a payment in exchange.

An Agreement to Pay a Lesser Amount to Settle an Unliquidated