BUSINESS ADMINISTRATION
BUSINESS LAW
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A debtor cannot settle a claim by paying less than the full amount even if additional consideration is given.
|
|
TRUE
|
|
|
FALSE
|
Explanation:
Detailed explanation-1: -Full and final settlement means that you ask your creditors to let you pay a lump sum instead of the full balance you owe on the debt. In return for having a lump-sum payment, the creditor agrees to write off the rest of the debt.
Detailed explanation-2: -A contract without consideration is void because it is not legally enforceable. “Consideration” means that each party must provide something of value to the other party as designated by the contract terms.
Detailed explanation-3: -To promise to do something that you are already obligated to do by law cannot serve as consideration.
There is 1 question to complete.