An agreement between two parties 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.

Question

Quizplus · Accepted Answer

An agreement between two parties to pay a lesser amount to settle an unliquidated debt is enforceable because there is consideration involved. The creditor agrees to accept a lesser amount than what is owed, while the debtor agrees to pay that lesser amount. This constitutes a legal agreement, and both parties receive some form of benefit or consideration from the agreement.

An Agreement Between Two Parties to Pay a Lesser Amount