Composition agreements are:
A) made in a way that allows the promisor to decide whether or not to perform the promise.
B) 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.
C) agreements entered into when someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration.
D) generally treated as non-binding on the parties to the agreement because of the fact that doing so appears to be contrary to the general rule on liquidated debts.

Question

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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.

Composition Agreements Are