Harold purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty pairs of the gloves were defective and a dispute arose as to the amount due under the contract. Harold refuses to pay the full $800, and Isaac is threatening to sue. Which of the following is correct with regard to this transaction? a. If Isaac agrees to accept $600 to settle the dispute and Harold agrees to pay that amount, the agreement is enforceable. b. If Isaac agrees to accept $600 to settle the dispute and Harold pays that amount, Isaac can still sue for the balance of $200 and will win the lawsuit. c. Harold is under a pre-existing legal obligation to pay the $800. d. Two of these but not all three

Question

Social Studies

Jaydan

17 August, 09:12

Harold purchased 400 pairs of gloves from Isaac at a contract price of $800. Fifty pairs of the gloves were defective and a dispute arose as to the amount due under the contract. Harold refuses to pay the full $800, and Isaac is threatening to sue. Which of the following is correct with regard to this transaction? a. If Isaac agrees to accept $600 to settle the dispute and Harold agrees to pay that amount, the agreement is enforceable. b. If Isaac agrees to accept $600 to settle the dispute and Harold pays that amount, Isaac can still sue for the balance of $200 and will win the lawsuit. c. Harold is under a pre-existing legal obligation to pay the $800. d. Two of these but not all three

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Answers (1)

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Beard · Answer 1

d. Two of these but not all three

Explanation:

From the information given above, there was a pre-existing contract between Harold and Isaac regarding to the gloves. This shows that, irrespective of issues that may come up, the contract agreement on the prices and quantity is still binding on them.

Also, if Isaac agrees to accept the $600 from Harold to settle the dispute and/or decided to sue for his remaining balance, it is still correct within the contract he entered into with Harold.