Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Question

Quizplus · Accepted Answer

An accord and satisfaction occurs when parties agree to accept a performance that is different from what was originally agreed upon, typically resolving a dispute over the original obligations. In this case, Rene and Scot agreed to change the payment from $5,000 later to $2,500 now, which is a classic example of accord and satisfaction.

Rene Contracts with Scot to Pay Him $5,000 for Repairs