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 under
A)neither the accord nor the original obligation.
B)the accord only.
C)the accord or the original obligation.
D)the original obligation only.

Question

Quizplus · Accepted Answer

Rewind can choose to sue Quito under either the original obligation of $5,000 or the accord of $4,000. The accord, being a new contract, replaces the original obligation but if Quito does not fulfill the new promise, Rewind can still choose to enforce the original obligation.

Quito Contracts with Rewind Graphix,Inc