Contracts

Under North Dakota contract law, 'accord and satisfaction' means:

AA court-ordered settlement
BAn agreement to accept a different performance in satisfaction of an existing obligation, which discharges the original obligation✓ Correct
CMutual cancellation of a contract
DPerformance of a contingency

Explanation

Accord and satisfaction occurs when the parties agree to substitute new performance (accord) for the original obligation, and upon the new performance being completed (satisfaction), the original obligation is discharged.

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