Changes To Contract Obligations

Question 1

Accord and Satisfaction

Answer 1

An agreement to substitute an existing debt for an alternative form of payment or performance to discharge the debt. The new agreement is called the accord, and the discharge is called the satisfaction.”

Requirements of Proof:

1. Defendant must have tendered payment in good faith resolution of debt (no scams) along with a conspicuous statement that it was in full satisfaction of debt.
2. There is a bona fide dispute over amount owed.
3. The claimant received payment on the instrument (deposited check) and did not repay it or return it.

Question 2

Rescission, Modification, Novation

Answer 2

Rescission: mutual cancelation of a K arises when both parties have obligations under the K and the agree to rescind it. 2) The agreement to rescind is an new K that excuses performance and 3) consideration required if non-UCC and good faith if it is. Modification - substitute agreement replaces orginal K Novation-parties agree to substitute a new party to perform obligations. Orginal party is released from K obligations. (Distinguish from delegation in that (a) does not release delegator from K, (b) does not require both parties to agree)