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Question 1

What is an accord?

Answer 1

A new agreement between two parties to an existing contract where one agrees to accept a different performance than the original (agreement that settles a dispute: compromise)

Question 2

If you owe someone $1000 under a contract and then you promise to give your car in settlement, and the person agrees, what is that called?

Answer 2

Accord

Question 3

Sending a check for less than what was owed and writing “payment in full” is an offer to what?

Answer 3

An accord

Question 4

What are some of the stipulations of an accord?

Answer 4

• must be completely performed before old duties are discharged
• must be clear that offeror seeks a total discharge

Question 5

If an accord has an offer seeking a total discharge, but that wasn’t clear, what is the result?

Answer 5

Payments made and accepted are just treated as part payment

Question 6

If an accord happens, and a party attempts to reserve his rights (like scratches out “payment in full” and cashes check) what is the majority approach?

Answer 6

The reservation is not accepted

Question 7

What are the elements of accord?

Answer 7

• offered in full settlement

- new consideration

Question 8

Can a good-faith dispute about how much was owed between the parties be considered new consideration for an accord?

Answer 8

Yes

Question 9

What is a liquidated claim?

Answer 9

The amount or the existence of the claim is undisputed

Question 10

What is an unliquidated claim?

Answer 10

A dispute about liability, amount due, or things like method of payment

Question 11

If you retain a check for an unreasonable amount of time, what has happened?

Answer 11

You have accepted it, and same for exercising dominion over cash-like things

Question 12

What is satisfaction?

Answer 12

Discharge of a legal duty by paying what is due (Promisor tenders performance and promisee accepts)

Question 13

What is the effect of a satisfaction?

Answer 13

It discharges the accord and the original contractual duty

Question 14

What is the parol evidence rule?

Answer 14

CL rule that a writing intended by the parties to be final cannot be modified by earlier or contemporaneous agreements that might add to, change, or contradict the writing

Question 15

When does the parol evidence rule come into play?

Answer 15

When one party tries to influence the effect of a written document by offering extrinsic evidence to add to it or explain its terms

Question 16

What is extrinsic evidence?

Answer 16

Things not contained in the writing

Question 17

How do you know if there is a final written agreement?

Answer 17

• if parties say it is final, there was an integration, or merger cause = final
• if agreement is clearly incomplete = not final and parol evidence can be introduced

Question 18

If a situation is ambiguous and it is really unclear whether a writing is final, what test is used by the courts?

Answer 18

Williston test: to see if reasonable people similarly situated would have expected the prior negotiations to survive the writing

Question 19

When is parol evidence always admissible?

Answer 19

To show defenses of:

• duress
• fraud
• mistake
• ambiguity
• formation defects

Question 20

Can you use parole evidence to negate formation of a contract if you were threatened into signing it?

Answer 20

Yes, because that would show the defense of duress

Question 21

Can Parol evidence be used to explain an ambiguity in a contract?

Answer 21

Yes. Ie: if a contract just said fruit, you can explain it by showing you were talking about apples

Question 22

Can negotiations after a written agreement was executed be shown by parol evidence?

Answer 22

Yes, parol evidence only bars things that happened before or contemporaneous with the contract, not after