James had a contract with Frasier to fix Frasier's plumbing issue at his home.The contract was made to fix the issue for $3, 000.But after the work was completed Frasier refused to pay anything unless James agreed to accept $2, 500.
-To avoid legal nuisance, Frasier decides to compromise with James.He asks James to fix a tap in the barn for $250, and modify the current contract to include the tap in the barn.James agrees to this, and does as asked, while Frasier remade the contract.Which of the following would this kind of settlement be referred to as?

Question

Quizplus · Accepted Answer

This kind of settlement is referred to as an accord. An accord is an agreement between two parties to settle a dispute or satisfy a contractual obligation, usually by agreeing to something that is different from the original terms of the contract. In this case, the original contract was to fix the plumbing issue for $3,000, but the accord modified the agreement to include fixing a tap in the barn for $250. Frasier and James both agreed to this new obligation and modified the contract to reflect the new agreement.

James Had a Contract with Frasier to Fix Frasier's Plumbing