Jerry received a bill for $300 from Johnson for a tune-up Johnson had performed on Jerry's car.Jerry called Johnson and told him,"The car runs no better now than before the tune-up.I am sending you $100 and no more." Johnson received the $100 check which was marked "paid in full" and cashed it.Jerry is still liable to Johnson for $200.

Question

Quizplus · Accepted Answer

By cashing the check marked "paid in full", Johnson agreed to accept the $100 as payment in full for the tune-up, which means Jerry is no longer liable for the remaining $200. This is a legal concept called "accord and satisfaction".

Jerry Received a Bill for $300 from Johnson for a Tune-Up