Question

A manufacturing company enters into a contract to license computer software from a tech company for​ $100,000. After the software is​ installed, the computer system works but not as well as promised. The manufacturing company refuses to pay the full amount of the contract. To settle the​ dispute, the parties agree that​ $50,000 is to be paid as full and final payment for the software. If the manufacturing company pays the​ $50,000, _______.

Answer 1

The payment of $50,000 made to tech company is satisfaction for the manufacturing company

Step-by-step explanation:

The reason is that the software is not generating the value that it must have generated due to computer's proper functioning. This means that the manufacturing company is delivering the money for the software which it thinks is satisfactory and legitimate. The later agreed price of $50,000 is a compromise and is often referred to as satisfaction.

Answer 2

Answer: Satisfaction.

Explanation: Agreements reached between two contracting parties due to dispute or certain issues arising from the terms of their initial agreement is called the satisfaction agreement. In the context above, the initial agreement reached before deploying the software was $100,000.Hiwecer, due to performance related issue, the company were reluctant to pay the initial agreement fee. Both parties, later agreed and reached a compromise of $50,000 instead of the initial $100,000. Payment of the $50,000 is called Satisfaction, the performance of the agreement or accord.