An agreement to pay a lesser amount to settle an unliquidated debt is:?
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.
Posted January 13th, 2012 in Debt Settlement. Tagged: public policy.
a
January 13th, 2012 at 7:00 pmThere is indeed consideration because the creditor is getting the benefit of not having to sue on the debt to liquidate it. The debtor gets consideration because the debt amount and payment are lowered.