Asked by David Mckay on Jul 15, 2024
Verified
A new agreement to pay less than the creditor claims is owed is called a(n) ________.
A) satisfaction
B) accord
C) voluntary dismissal without prejudice
D) written compromise
E) written acknowledgement
Accord
An agreement between parties to settle a dispute by making concessions.
Creditor Claims
Legal claims by creditors to the assets of a debtor in the event of bankruptcy or insolvency.
Voluntary Dismissal
A legal action whereby the plaintiff or petitioner chooses to terminate proceedings without a judge's resolution of the case.
- Master the idea and factors of consideration necessary for contract establishment.
- Contrast the enforcement mechanisms for agreements involving liquidated debts with those for unliquidated debts.
Verified Answer
DF
Daisy FandinoJul 15, 2024
Final Answer :
B
Explanation :
An accord and satisfaction is an arrangement between contracting parties whereby one of the parties substitutes a different performance for his or her original duty under the contract.In an accord and satisfaction,the "accord" is the new agreement to pay less than the creditor claims.
Learning Objectives
- Master the idea and factors of consideration necessary for contract establishment.
- Contrast the enforcement mechanisms for agreements involving liquidated debts with those for unliquidated debts.