Delaney's Department Store had been trying for three years to collect $100 owed it by a customer.Finally the customer said, "Look, I'm broke.I can give you $50 right now and I'll wash the windows on the front of your store if you'll forget about the rest of it." Delaney's accountant, thinking that they would never see any money at all if they didn't accept this offer agreed to it.This is an example of

Question

Quizplus · Accepted Answer

This scenario is an example of an accord and satisfaction. An accord is an agreement to accept something different than what was originally promised in order to settle a debt or dispute. In this case, the customer offered to pay $50 and wash the windows instead of paying the full $100. This offer was accepted by Delaney's accountant, creating a new agreement (the accord) in which the debt was settled for less than what was owed. The act of washing the windows (the satisfaction) completed the agreement.

Delaney's Department Store Had Been Trying for Three Years to Collect