Asked by Albatool Ahmed on May 22, 2024
Verified
Which of the following is adequate consideration?
A) A preexisting duty
B) Agreement to settle an unliquidated debt
C) A preexisting moral obligation
D) Nominal consideration
Unliquidated Debt
A debt for which the exact monetary value has not been determined, often due to the nature of the claim or disputes over the amount.
Preexisting Duty
A legal concept referring to a duty that a party is already legally obliged to perform, which cannot serve as consideration for a new contract.
Adequate Consideration
A value that is fair and reasonable under the circumstances for both parties involved in a contract, not necessarily equal in monetary terms but sufficient to support the agreement.
- Recognize the elements that constitute legal consideration and discern them from those that are inadequate or nonexistent.
Verified Answer
GC
Gianna CanizioMay 25, 2024
Final Answer :
B
Explanation :
A good faith dispute about either the existence or the amount of a debt makes the debt an unliquidated debt.The settlement of an unliquidated debt is called an accord and satisfaction.
Learning Objectives
- Recognize the elements that constitute legal consideration and discern them from those that are inadequate or nonexistent.