Toughones, a car part manufacturer, entered into a contract to license computer software from a Vizera Inc.for $250, 000.This software is to be used to keep track of inventory, accounts receivable, and other financial data.After the software was installed, the computer system worked but it had a few glitches.Toughones refused to pay the full amount in the contract.To settle the dispute, the parties agree that $180, 000 is to be paid as full and final payment for the software.Toughones paid the $180, 000 as agreed.What kind of agreement did Toughones and Vizera reach in the end?

Question

Quizplus · Accepted Answer

Toughones and Vizera reached an accord and satisfaction, which is a contract law concept that occurs when the parties to a contract agree to a new arrangement that is different from the original one. In this case, Toughones and Vizera agreed to a new payment amount of $180,000 as full and final payment for the software to settle their dispute.

Toughones, a Car Part Manufacturer, Entered into a Contract to License