Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is Select one: a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. specific performance.

Question

Business

Gillian Scott

4 November, 00:24

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is Select one: a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. specific performance.

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Answers (2)

Know the Answer?

Schroeder · Answer 1

b an accord and satisfaction.

Explanation:

b an accord and satisfaction is a correct answer because an accord and satisfaction in a new agreement that suspends the terms of an existing agreement in favour of a new one. Thus the answer is b) an accord and satisfaction

Arianna · Answer 2

The correct answer is letter "B": an accord and satisfaction.

Explanation:

An accord and satisfaction is a type of agreement to parties get to that dilutes a previous agreement dealt with the purpose to redetermine the terms of the pact without the need of taking the claim to court. For this new pact to work, both parties must have gotten to a mutual agreement that benefits each of them.