Oren and Pat are parties to a contract for the management of Oren's residential rental properties. A dispute arises between them over the obligations due under the contract. They negotiate a compromise and form a different agreement to substitute for the original one. This settlement agreement does not require
A) the existence of a previous, valid obligation.
B) the agreement by the parties to the new contract.
C) a third party.
D) a new, valid contract.

Question

Oren and Pat are parties to a contract for the management of Oren's residential rental properties. A dispute arises between them over the obligations due under the contract. They negotiate a compromise and form a different agreement to substitute for the original one. This settlement agreement does not require
A) ​the existence of a previous, valid obligation.
B) ​the agreement by the parties to the new contract.
C) ​a third party.
D) ​a new, valid contract.

Quizplus · Accepted Answer

A settlement agreement does not require a third party; it involves only the original parties agreeing to a new contract to replace the previous one.

Oren and Pat Are Parties to a Contract for the Management