Clint contests the amount of a bill he received from Car Care Specialists. Under the Restatement, settlement of the claim:
A) is not valid consideration.
B) is not a legal detriment to Clint if his contentions were not made in good faith.
C) is valid consideration if at the time of the settlement the claim was doubtful because of uncertainty as to the facts.
D) does not involve a disputed debt unless Clint contests both the existence of the obligation and the amount of the bill.

Question

Quizplus · Accepted Answer

Settlement of a claim can serve as valid consideration if the claim is uncertain or doubtful because of factual uncertainties. This means that if Clint and Car Care Specialists reach a settlement over a disputed bill, where the dispute arises from uncertain facts, the settlement is supported by valid consideration. This is because both parties are giving up their right to pursue the claim further in exchange for certainty and resolution.

Clint Contests the Amount of a Bill He Received from Car