An accord and satisfaction:
A) usually arises in settlement of a dispute under the original contract.
B) brings a new third party into the contract.
C) discharges the original contract's duties upon reaching the accord.
D) can come into existence even if only one party wants it.
E) is against public policy and illegal.

Question

Quizplus · Accepted Answer

An accord and satisfaction usually arises in settlement of a dispute under the original contract, where the parties agree to a new or modified performance that discharges the original contract's duties upon reaching the accord. It is a common way to resolve contract disputes without going to court. Choices B and E are incorrect as a third party is not involved in accord and satisfaction, and it is not against public policy or illegal. Choice D is also incorrect as an accord and satisfaction requires mutual agreement from both parties involved.

An Accord and Satisfaction