Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer.Wilson has financial troubles and he and Shelby sign an accord,in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000.Wilson's delivery of the bike and $4,000 to Shelby is

Question

Quizplus · Accepted Answer

The agreement between Wilson and Shelby is an accord, which is essentially an agreement between two parties to accept something other than the performance promised under the original contract. Wilson's promise to pay $4,000 and give Shelby his mountain bike in lieu of the $5,000 owed is the accord.

However, once Wilson delivers the bike and $4,000 to Shelby, this is considered satisfaction, which means that the obligation under the original contract (to pay for the repairs) has been discharged. Therefore, choice B is the correct answer.

Substantial performance refers to a situation where a party has not fully performed under a contract, but has performed to a degree that is satisfactory to the other party. This does not apply in this scenario.

Dovation is not relevant to this scenario, as it refers to a situation where a new contract replaces an existing one.

Wilson Owes Shelby $5,000 for Repairs on Wilson's Bobcat Skidsteer