Asked by Kennedy Ellison on May 02, 2024
Verified
Which of the following is a valid Uniform Commercial Code (UCC) rule regarding checks marked "paid-in-full"?
A) If a business inadvertently cashes a check marked "paid-in-full," the business has 30 days from the date it cashed the check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction.
B) If a business inadvertently cashes a check marked "paid-in-full," the business has 60 days from the date it cashed the check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction.
C) If a business inadvertently cashes a check marked "paid-in-full," the business has 90 days from the date it cashed the check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction.
D) If a business inadvertently cashes a check marked "paid-in-full," the business has 120 days from the date it cashed the check to offer repayment in the same amount to the debtor and avoid an accord and satisfaction.
E) If a business inadvertently cashes a check marked "paid-in-full," the business has no recourse,and the debt is legally satisfied and discharged.
Uniform Commercial Code
An extensive collection of statutes that regulate every aspect of business dealings within the United States, aimed at standardizing the legal framework for sales and various commercial activities throughout the states.
Paid-In-Full
A status indicating that a debt or obligation has been completely settled or paid off.
Accord And Satisfaction
A legal agreement between parties to settle a dispute where the debtor agrees to pay a defined amount less than the creditor claims, which once paid, fulfills the obligation.
- Achieve insight into the concept and elements quintessential to contract configuration.
- Explain the variance in how agreements for liquidated debts and unliquidated debts are implemented.
Verified Answer
Learning Objectives
- Achieve insight into the concept and elements quintessential to contract configuration.
- Explain the variance in how agreements for liquidated debts and unliquidated debts are implemented.
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