Which of the following statements is true about unliquidated debts?
A) As the amount is due and certain, a promise to pay less lacks consideration.
B) All courts allow collection of the remainder if checks marked "payment in full" are cashed without reservation.
C) As the amount is genuinely in dispute, an agreement resulting in accord and satisfaction is enforceable.
D) Composition agreements are an exception to unliquidated debts and can be enforced without additional consideration.

Question

Quizplus · Accepted Answer

An honest dispute about the existence or amount of a debt makes the debt an unliquidated one. As the parties give up the right to have a court decide the liability in exchange for the other's promise to settle their dispute for a definite amount, their mutual promises are supported by consideration and enforceable.

Which of the Following Statements Is True About Unliquidated Debts