Use the fact situation in Q10 to answer the related question that follows. The principle of law that arises out of the fact situation above was meant to overcome an earlier principle of law that stated that
A)payment of a lesser sum terminates the contract.
B)a contract does not need consideration at all.
C)a contract is terminated by performance.
D)payment of a lesser sum in satisfaction of a greater sum is no payment at all.
E)none of the above

Question

Quizplus · Accepted Answer

The fact situation relates to the doctrine of accord and satisfaction, where a party agrees to accept a lesser sum in satisfaction of a greater sum owed under a contract. The principle of law that arises out of this is that payment of a lesser sum in satisfaction of a greater sum is no payment at all. This principle overcomes the earlier principle that payment of a lesser sum terminates the contract. Options A, B and C are not relevant to this fact situation.

Use the Fact Situation in Q10 to Answer the Related