The promise of a creditor to refrain from collecting a debt is consideration for a promise by the debtor to modify the terms of the transaction.

Question

Quizplus · Accepted Answer

This statement is true. When a creditor promises to refrain from collecting a debt, they are providing consideration for the debtor's promise to modify the terms of the transaction. This constitutes a binding agreement between the parties.

The Promise of a Creditor to Refrain from Collecting a Debt