Steven owes Theresa $100 for a used computer which he bought last year at Theresa's garage sale. The two agree that the debt can be paid by Steven's shoveling Theresa's driveway from January through March. The new contract is a(n):
A) accord.
B) satisfaction.
C) novation.
D) rescission.

Question

Quizplus · Accepted Answer

An accord is an agreement to discharge a preexisting debt or claim by providing some performance other than what was originally due. In this case, Steven and Theresa agreed that Steven would shovel Theresa's driveway instead of paying $100, which constitutes an accord.

Steven Owes Theresa $100 for a Used Computer Which He