Contracts
Accord and satisfaction in contract law means:
ABoth parties have fully performed their obligations
BThe parties agree to accept different performance than originally agreed to settle a dispute✓ Correct
CA court has ordered specific performance
DThe contract has been assigned to a third party
Explanation
Accord and satisfaction occurs when the parties agree (accord) to accept different or lesser performance than originally contracted, and that new performance is completed (satisfaction), discharging the original obligation.
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Key Terms to Know
Option Contract
A contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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