Stan purchased 400 pairs of gloves from Isaac at a contract price of $800.Fifty of the gloves were defective,and a dispute arose as to the amount due and owing under the contract.Stan refuses to pay the $800,and Isaac is threatening to sue.Which of the following is correct with regard to this transaction?
A) If Isaac agrees to accept $600 to settle the dispute and Stan agrees to pay that amount,the substitute agreement is enforceable.
B) If Isaac agrees to accept $600 to settle the dispute and Stan pays that amount,Isaac can still sue for the balance of $200 and will win the lawsuit.
C) Stan is under a pre-existing legal obligation to pay the $800.
D) Stan must return the defective gloves to Isaac,who must replace them.Then,Stan must pay the $800.

Question

Quizplus · Accepted Answer

A substitute agreement, where both parties agree to a new amount to settle a dispute, is enforceable once agreed upon by both parties. This means Isaac cannot later sue for the original amount since they've both agreed to the new terms.

Stan Purchased 400 Pairs of Gloves from Isaac at a Contract