If a debt is liquidated, accord and satisfaction cannot take place.

Name: If a debt is liquidated, accord and satisfaction cannot take place.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Liquidation refers to the settling of a debt by paying it in full or by selling assets to repay the debt. In such a case, there is no outstanding debt left to be satisfied by way of accord and satisfaction. Therefore, if a debt is liquidated, accord and satisfaction cannot take place.

If a Debt Is Liquidated, Accord and Satisfaction Cannot Take