Assuming no exception applies, which of the following is true regarding the effect of a debtor offering to pay less money than is owed as full payment on a debt for which there is no dispute over the amount or existence of the debt, and the creditor agrees?
A) A liquidated debt is involved, and there is an accord and satisfaction.
B) A liquidated debt is involved, and there is an accord but no satisfaction.
C) A liquidated debt is involved, and there is neither a satisfaction nor an accord.
D) An unliquidated debt is involved, and there is an accord and satisfaction.
E) An unliquidated debt is involved, and there is an accord but not satisfaction.

Question

Quizplus · Accepted Answer

In the case of a liquidated debt where there is no dispute over the amount or existence, offering to pay less than the full amount does not constitute a valid accord and satisfaction because there is no consideration for the creditor to accept less than what is owed.

Assuming No Exception Applies, Which of the Following Is True