BUSINESS ADMINISTRATION
BUSINESS LAW
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Time for the debt to be repaid
|
|
|
Money the debt represents
|
|
|
Interest on the debt
|
|
|
Liability incurred
|
Detailed explanation-1: -In a liquidated debt, the parties agree on the exact amount that is due. An accord and satisfaction can be used to settle both liquidated and non-liquidated debts. Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract.
Detailed explanation-2: -A collateral contract is one in which one person (the guarantor) agrees to pay the debt or obligation that a second person (the principal debtor) owes to a third person (the obligee) if the principal debtor fails to perform.
Detailed explanation-3: -A mutual mistake occurs when the parties to a contract are both mistaken about the same material fact within their contract. They are at cross-purposes. There is a meeting of the minds, but the parties are mistaken. Hence the contract is voidable.