_____ are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their _____ claims against the debtor at or after the due date, in _____ satisfaction of their claims.
A) Requisitions; unliquidated; partial
B) Compositions; liquidated; full
C) Extraordinary renditions; unliquidated; partial
D) Routine renditions; liquidated; full

Question

Quizplus · Accepted Answer

Compositions are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date, in full satisfaction of their claims. They are generally treated as binding on the parties to the agreement, despite the fact that doing so appears to be contrary to the general rule on liquidated debts. Creditors usually enter compositions when they believe that failure to do so may result in the debtor's bankruptcy, in which case they might ultimately recover a smaller percentage of their claims than that agreed to in the composition.

_____ Are Agreements Between a Debtor and Two or More