Andre owes Brendan $180. Brendan is offered $100 by Andre as full and final settlement. Brendan accepts this offer. Which one of the following is most correct?

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BlackTom AI · Accepted Answer

The question involves an accord and satisfaction scenario where a debtor offers a lesser amount to settle a disputed claim.
Option a: 'Brendan has a legal right to the additional $80, despite the promise to accept a lower amount.' This is not correct because once an offer to settle for a lesser amount is accepted and the settlement is performed, the debtor’s remaining claim is typically discharged. Brendan does not retain a separate right to recover the $80 after agreeing to accept $100 as full and final settlement.
Option b: 'Brendan is absolutely precluded from suing Andre for the additional $80 if he accepts $100.' This is the most accurate statement. In an accord and satisfaction, the debtor’s offer of a lesser amount, coupled with the creditor’s acceptance and the performance of the agreed settlement, usually bars further claims for the remaining amount.
Option c: 'This situation is very similar to the facts in Balfour v Balfour.' Balfour v Balfour concerns a domestic-style contract and the enforceability of a promise to marry; it is not a relevant parallel to an ordinary debt settlement and does not illuminate accord and satisfaction principles.
Option d: 'Andre does not have to return the additional $80 without additional consideration being provided by Brendan.' This is incorrect in the context of an accepted full settlement. Once Brendan accepted the $100 as full settlement, there is no ongoing obligation for Andre to provide more money unless new consideration is offered, which would defeat the purpose of the settlement.
In summary, options a, c, and d misstate how accord and satisfaction operates or draw irrelevant parallels, while option b correctly captures that accepting a lesser amount as full settlement typically precludes further recovery of the balance.

Andre owes Brendan $180. Brendan is offered $100 by Andre as full and final settlement. Brendan accepts this offer. Which one of the following is most correct?

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