Discharge of not due or disputed debt requires what?

• A. Not due or disputed debt requires consideration
• B. Not due or disputed debt requires no consideration
• C. Past due debt requires no consideration
• D. Only if there is a writing

Answer: (A)

When a debt isn’t due yet or isn’t in dispute, a promise to discharge it must be supported by consideration to be enforceable. Without something of value exchanged, the promise to release the debtor from the obligation is simply a gratuitous promise and has no enforceable effect. The act of discharging a not-yet-due or disputed debt is not binding unless the creditor and debtor bargain for something in return—for example, the debtor offering to pay a lesser amount or the creditor giving up some right in exchange. A writing requirement isn’t the governing rule here; the key is that there must be consideration for the discharge to be enforceable.