of a debt 40. On Saturday, Sal offered Owen a cashier's check for $5,000 on July 1, 2005 toher. The interest on the loan was 8% and Owen had taken Sars boat the debt. litigated and, as collateral to secure $7,000. The dispute was Owen refused the tender, claiming that Sal actually owed him that the amount on October 1, 2006, a court issued a judgment for Sal, confirming a result of Sa's tender on July 1 and the court decision, Owen must pay the court owed was $5,000 b. Sal owes no interest on the debt after July 1, 2005. C. Owen loses his security interest in the boat d. All of the above 41. Tomas owns a home that is encumbered by a mortgage held by Smalltown Bank. Messina to discuss the agrees to buy the house for $90,000. Tomas and Messina go to Smalitown purchase. After a negotiation among a Smalitown banker, Tomas and agreement under which: Messina would assume the mortgage and gain ownershig Messina, the three sign an Messina became Smalltown's was discharged from liability on the mortgage. mortgagee on the mortgage; and Tomas received $90,000 and a. b. c. Tomas is liable on the mortgage if Messina defaults The agreement among the three is a novation. Smalltown is a donee beneficiary d. The agreement among the three is an assignment of a contract by Tomas to Messina. 42. Which of the following statements is true about an accord and satisfaction? It is only used in labor contracts. a. b. c. d. It can only be used in liquidated debt contracts. It can be used for unliquidated debts based on contract or tort claims. It is only used in construction contracts 43. Big Oil Company has a contract with homeowner to deliver however much heating oil homeowner needs for the fall and winter seasons. This is an example of a (n) contract. a. Requirements b. Output c. Unilateral d. Consumer lease e. Special needs 44. Customer ordered fried chicken strips at the drive-in window of Famous Burger.One of the "strips" turned out to be an entire chicken head, battered and deep fried. Famous Burger tested the head and found that it was, indeed, cooked in their batter and in their oil. Pictures of Customer with the fried head showed up in newspapers and on the Internet. Famous Burger offered Customer a cash settlement in exchange for Customer's promises not to divulge the amount of the settlement, sue Famous Burger over the incident, or ever speak of it in public again. Agreeing not to exercise these three rights in exchange for the settlement is an example of a. Renunciation c. An accord and satisfaction d. Restitution b. Substitution