Ian owes Shirley $5,000,which is payable in five installments at an interest.However,after two installments,Ian offers to pay Shirley the entire debt to avoid paying the interest.In this scenario,which of the following will take place if Shirley announces that Ian does not have to pay the debt in further installments?
A) waiver
B) negotiation
C) release
D) arbitration
E) rescission

Question

Quizplus · Accepted Answer

In this scenario, a release takes place if Shirley announces that Ian does not have to pay the debt in further installments. Releases usually occur before a contracting party fails to perform. A release often takes the form of a negotiated contract. The release is bargained for and is supported by consideration. Ian can seek Shirley's release to avoid making interim payments.

Ian Owes Shirley $5,000,which Is Payable in Five Installments at an Interest.However,after