Kate and Ben entered into a contract.She promised to transfer 1000 shares in XYZ Corp to him; he promised to personally draft architectural plans to certain specifications for her.Kate transferred the shares to Ben as promised, but he later discovered that he simply lacked the ability to uphold his end of the bargain.Which of the following statements is TRUE?

Question

Quizplus · Accepted Answer

Accord and satisfaction is a new agreement made between the parties to a contract, where one party agrees to accept something different from what was originally promised in exchange for releasing the other party from their obligations under the original contract. If Kate agrees to accept a computer program from Ben in exchange for giving up her right to demand architectural plans, this would be a valid accord and satisfaction.

B is incorrect as contracts can be enforceable without involving the exchange of money, and this contract involves the transfer of securities.

C is incorrect as a seal is not necessary for an accord and satisfaction to take place.

D is irrelevant as the prompt does not mention any timeline for completion of the architectural plans.

E is not necessarily the simplest way to resolve the issue, especially if one or both parties are reluctant to cancel the contract altogether.

Kate and Ben Entered into a Contract