Question

An agreement to settle an earlier contract that was in dispute is:

a. An illusory promise.
b. A putout contract.
c. A novation.
d. The exercise of an option to cancel.
e. An accord and satisfaction.

Answer 1

An agreement to settle an earlier contract that was in dispute is called an accord and satisfaction.

Step-by-step explanation:

An agreement to settle an earlier contract that was in dispute is called an accord and satisfaction.

Accord and satisfaction is a legal term that refers to an agreement between parties to resolve a dispute by making a new agreement that satisfies the original contractual obligation. The accord is the new agreement, while the satisfaction is the performance of the new agreement.

For example, if two parties had a contract to deliver a product but there was a dispute over the quality, they may agree to settle the dispute by modifying the contract and delivering a different product or providing compensation.