Ian owes $5000 to Shirley, which is payable in five instalments at an interest. However, after two instalments, Ian offers to pay Shirley the entire debt to avoid paying the interest. Which of the following will take place if Shirley announces that Ian does not have to pay the debt in further instalments?
A) Waiver
B) Negotiation
C) Release
D) Arbitration
E) Rescission

Question

Quizplus · Accepted Answer

Releases usually occur before a contracting party fails to perform. A release often takes the form of a negotiated contract. The release is bargained for and is supported by consideration. A borrower may seek the lender's release to avoid having to make an interim payment.

Ian Owes $5000 to Shirley, Which Is Payable in Five