Quito contracts with Rewind Graphix,Inc.,to pay $5,000 for its work on the animated film "Song." After Rewind performs,they sign an accord,in which Quito promises to pay $4,000 within ten days instead of $5,000 later.But Quito does not pay.Rewind can sue Quito
A)under no circumstances.
B)on the accord only.
C)on the accord or the original obligation.
D)on the original obligation only.

Question

Quizplus · Accepted Answer

The accord made between Quito and Rewind modifies the original obligation, giving Quito a new payment deadline and a reduced amount owed. However, because Quito failed to comply with the accord and did not pay within the specified time frame, Rewind has the option to sue Quito for either the amount agreed upon in the accord or for the original obligation. Therefore, the correct choice is C, as both options are available to Rewind.

Quito Contracts with Rewind Graphix,Inc