Which of the following is true regarding the effect of a debtor offering to pay a different type of payment, for example, goods instead of money, on a debt for which there is not a 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 not a satisfaction or 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

When a debtor offers to pay a different type of payment (e.g., goods instead of money) on a debt that is not disputed, and the creditor agrees, it involves a liquidated debt. The agreement to accept a different form of payment constitutes an "accord," and the actual acceptance of this different payment fulfills the "satisfaction" part, thus resolving the debt.

Which of the Following Is True Regarding the Effect of a Debtor