Fernando Owes Lucia $8,000

Multiple Choice

Fernando owes Lucia $8,000. They both realize he is unlikely to be able to repay that much, so Lucia says: "Pay me $5,000 and we'll call it good." Fernando pays the $5,000. This settlement is called:

A) preexisting duty
B) liquidated debt
C) unliquidated debt
D) accord and satisfaction
E) detrimental reliance