Partial payment of undisputed debt: which is true?

• A. A No new consideration is needed
• B. B The debt is forgiven
• C. C The creditor must accept a new contract
• D. D New consideration is needed

Answer: (D)

When a contract is being modified, fresh consideration is required. Here, the debt is undisputed, meaning the amount owed is fixed. Simply agreeing to take less money in full satisfaction does not automatically discharge the remaining balance unless there is something new given in exchange. The debtor must provide new consideration (or the parties must reach a valid accord and satisfaction with new consideration) for the modification to be enforceable. That’s why new consideration is needed. Without it, partial payment on an undisputed debt doesn’t bind the creditor to forgive the rest. The other options imply forgiveness or automatic acceptance of a reduced sum, which isn’t guaranteed unless there’s a proper, newly supported agreement.