Final answer:
The correct answer is 'd. a satisfaction', which happens when the original debt obligation is discharged upon the performance of a new agreement to pay less than the amount owed.
Step-by-step explanation:
When Gwen, who is indebted to the Home Loan Company for $75,000, agrees to pay a lesser amount than originally owed, and the Home Loan Company agrees to accept it, the performance of this agreement is known as d. a satisfaction.
A satisfaction occurs when the obligee accepts an accord, which is an agreement to discharge the original obligation by performing a new one. It becomes a satisfaction once the new agreement is actually performed. This is different from an illusory promise, which is a statement that is neither legally enforceable nor binding, and a release, which is usually a relinquishment of a right or obligation. Thus, once the agreed-upon lesser amount is paid by Gwen, the original debt is considered settled, and the accord is satisfied.
The performance of this agreement is a satisfaction. In this scenario, Gwen and Home Loan Company have reached an agreement to settle Gwen's debt for a lesser amount than the original claim. This agreement satisfies the debt owed, hence, it is considered a satisfaction.