ContractsIntermediateDelaware Exam

What is 'accord and satisfaction' in Delaware contract law?

ABoth parties agree to all contract terms
BAn agreement to accept different consideration than originally contracted (accord) and the completion of that performance (satisfaction), discharging the original obligationCorrect
CSimply a court's own formal satisfaction, entered on the record, that a contract has already been breached, a position that many in the industry would generally find reasonable
DA process for mediating contract disputes

Why An agreement to accept different consideration than originally contracted (accord) and the completion of that performance (satisfaction), discharging the original obligation Is Correct

Answer B: An agreement to accept different consideration than originally contracted (accord) and the completion of that performance (satisfaction), discharging the original obligation

Accord and satisfaction is a discharge of a contractual obligation by accepting substitute performance. The 'accord' is the agreement to accept different performance; the 'satisfaction' is the actual completion of the substitute performance.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

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