Question

Sam takes photos at the Callie's wedding. Sam thinks Callie owes him 1,000 for the wedding, while Callie think she only owes Sam750. Callie sends Sam a check for 750. Which of the following is true?

1) Callie still owes Sam250.
2) This is a liquidated debt only if the check was mailed within five days of the wedding.
3) This is a liquidated debt.
4) This is an unliquidated debt.

Answer 1

4)Sam and Callie are in a dispute over the amount owed for wedding photography services. Callie has paid $750, but Sam believes he is owed $1,000.

Step-by-step explanation:

The case described involves a dispute over payment for services rendered. Sam believes he is owed $1,000 for photographing Callie's wedding, but Callie thinks she only owes $750 and sends a check for that amount.

This situation exemplifies an unliquidated debt, which is option 4. An unliquidated debt is one where the existence or amount of the debt is in dispute.

As Callie has paid part of the amount she believes she owes, it means that there is no agreed-upon amount between the two parties, which is characteristic of an unliquidated debt.

Options 1, 2, and 3 are not accurate because the existence of the debt and its exact amount are still in dispute, and tentatively, Callie would still owe Sam $250 if his claim of $1,000 is valid.

The timing of the check mailing and the nature of the debt as liquidated or unliquidated are not dependent on each other as option 2 erroneously suggests.