Kelly contracts with Raphael for Raphael to bring a pony to her daughter's birthday party in exchange for $100. Kelly later learns her daughter is frightened of ponies. She contacts Raphael and Raphael agrees to bring a donkey to the party for $50 instead. Which of the following is true of the original agreement involving the pony and the $100?
A) It was discharged by accord and satisfaction
B) It was discharged by novation
C) It was discharged by substituted contract
D) It was discharged by mutual rescission
E) It was breached

Question

Quizplus · Accepted Answer

The original agreement was discharged by a substituted contract, where both parties agreed to replace the initial contract (pony for $100) with a new agreement (donkey for $50). This is a common legal practice when both parties consent to change the terms of their original agreement.

Kelly Contracts with Raphael for Raphael to Bring a Pony