Hu contracts with Internet Service, Inc. (ISI), to pay $500 for its serv?ices. After ISI performs, they sign an accord, in which Hu promises to pay $400 within ten days instead of $500. Hu does not pay. ISI can sue Hu under
A) neither the accord nor the contract.
B) the accord only.
C) the accord or the contract.
D) the contract only.

Question

Quizplus · Accepted Answer

ISI can sue Hu under both the accord and the original contract. The accord is a new agreement that modifies the terms of the original contract, and creates a legal obligation for Hu to pay $400 within ten days. However, if Hu fails to pay the reduced amount, ISI can still enforce the original contract and seek damages of $500. Therefore, both the accord and the contract provide legal remedies for ISI in case of non-payment.

Hu Contracts with Internet Service, Inc