If you owe Mr. Storr $900 for goods received and Mr. Storr agrees to take $800 in full satisfaction of the debt, which of the following is true?
A) At common law, such a one-sided promise is always binding and Mr. Storr could sue for the remaining $100.
B) Many jurisdictions have passed legislation preventing Mr. Storr from suing you for the difference if he actually takes the $800.
C) The issue of consideration is irrelevant when dealing with satisfaction of a debt.
D) Under these circumstances, you only have to pay a reasonable price for the goods.
E) Even if you take the $800 to him, Mr. Storr can later sue you for the $100 on the principle of quantum meruit.

Question

Quizplus · Accepted Answer

This scenario involves the concept of accord and satisfaction, where Mr. Storr agrees to accept a lesser sum than what was originally owed in full satisfaction of the debt. Many jurisdictions have passed legislation stating that if the creditor accepts the lesser amount, they cannot later sue for the difference. Therefore, option B is the correct answer. Option A is incorrect because the one-sided promise is not binding; the creditor must agree to the accord and satisfaction. Option C is incorrect because consideration is still necessary for the agreement to be binding. Option D is incorrect because the reasonable price for the goods is irrelevant once the debt is already established. Option E is also incorrect because the accord and satisfaction would prevent Mr. Storr from later suing for the difference.

If You Owe Mr