Contracts

Question 1

Accord and Satisfaction

Answer 1

For accord and satisfaction, it requires that the amount of the debt be in DISPUTE. A K may be discharged by an accord (to accept some other performances in lieu of the performance req’d under the existing K) and satisfaction (the performance of the accord agreement)

Question 2

Can you make a promise not to do something for consideration during an oral modification under a common law k?

Answer 2

Yes, you can make a promise not to do something and it will be sufficient consideration to modify a K. (See Barbri Half Day question 31)

Question 3

Creditor Beneficiary

Answer 3

A third party is a creditor beneficiary of a K if the promisee’s primary intent in contracting is to discharge an obligation owed to a third party.

Question 4

Restitution

Answer 4

A party who has breached a k (and therefore cannot enforce it) can recover restitution under the modern view to prevent unjust enrichment of the other party.

Question 5

Perfect Tender Rule

Answer 5

Under the perfect tender rule, a buyer may reject the entire shipment if it does not confirm with the K. This is tempered by the seller’s opportunity to cure defects, cure is not mentioned as an option here.