You owe Mr. Store $900 for goods received and want him to take $800 in full satisfaction of the debt. Which of the following is false?
A) If he agrees with you and does take the $800, even if it is paid early at his request, he can still later sue you for the $100 forgiven. His promise not to demand the $100 from you was a gratuitous promise and therefore not binding.
B) If he actually takes the $800 in full satisfaction of the debt, statute law in many jurisdictions prohibits him from suing you for the $100.
C) If you pay the $800 before the actual due date in consideration for his taking this as full payment, he cannot sue for the other $100.
D) If Mr. Store agreed to take the $800 as full payment in exchange for your promise to sweep the floor of his store, he cannot sue for the $100.
E) If Mr. Store agreed to take the $800 as full payment, but before taking it changed his mind, he would be entitled to the entire $900.

Question

Quizplus · Accepted Answer

Option A is false because if Mr. Store agrees to accept $800 in full satisfaction of the debt and this agreement is supported by consideration (such as paying early or providing some service like sweeping the floor), then he cannot later sue for the $100. This agreement constitutes an accord and satisfaction, which is binding.

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