Question

Lance contracts with Herman to fix the brakes on his car. The agreed upon amount is $750. When Herman is fixing the brakes, he notices that a wheel bearing needs replacement because it is completely broken. When Lance picks up his car the bill is $900. Lance says he will not pay this amount but the agreed upon $750. This is considered a(n) ______ debt.

Answer 1

Answer: disputed debt

Explanation:

The above scenario in the question explains a disputed debt. This occurs when there's a disagreement between two parties based on the amount owed.

In this case, Lance contracts with Herman to fix the brakes on his car for $750 but when Lance picks up his car, the bill is $900 and Lance insisted on paying the $750 that was agreed on. This shows a disputed debt.