BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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that the debt exists
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on the amount of the debt
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that the debt exists and on the amount of the debt
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none of these
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Detailed explanation-1: -The act of determining the cash value of some debt or damage. The parties involved essentially reduce their legal conflict or outstanding debts to a dollar amount. Debts and damages can be liquidated in various ways: by an agreement before any dispute arises, by an agreement after a dispute arises, or by litigation.
Detailed explanation-2: -A liquidated debt is an obligation the existence or amount of which is in dispute. Consideration has only one basic element, which is a bargained-for exchange. A unilateral contract may consist of a promise exchanged for an act or forbearance.
Detailed explanation-3: -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.