Question

Vince owes Colton $140,000 under a previous contract. Vince does not have the money but does own property worth approximately $140,000. Colton agrees to accept the property instead of the money and Vince transfers the property to him. The transfer is called:________. a. an accord. b. a rescission. c. a satisfaction.

Answer 1

A) an accord.

Step-by-step explanation:

In contract law, an accord and satisfaction refers to an agreement and later exchange of consideration when one party cannot fulfill a debt obligation, and agrees to transfer consideration (something of value) to the other party in exchange for the receiving party to discharge the original contract.

The agreement is called an accord, and the consideration is called the satisfaction. In this case, the transfer is the accord and the $140,000 is the satisfaction.

Answer 2

Option C. The transfer is a satisfaction.

Step-by-step explanation:

In general terms, people perceive satisfaction as a least requirement of fulfillment of a desire. In the legal terms, the satisfaction is the consideration (anything that has monetary value) which is enough in amount to offset the legal obligations (liability). In this case the property is worth $140,000 which is equal to the amount the person Vince owes to Colton so this consideration can be used to offset the liability of Vince as it is a satisfaction.