Ms. Hart hires her neighbor Agatha to accompany her on a challenging road trip, paying her $1000. Agatha agrees to guide the trip, act as chauffeur, and help with basics tasks along the way. Agatha is a terrible driver, gets lost multiple times, and refuses to help with some of the tasks. When they arrive home, Ms. Hart refuses to pay, telling Agatha she did not complete the services as agreed. Agatha uses her charisma and both parties finally settle on $400. Which of the following is true:

Question

BlackTom AI · Accepted Answer

The scenario involves a disputed service contract where Agatha agreed to accompany Ms. Hart, perform driving and basic tasks for $1000, but the actual performance was subpar. The key legal concept here is accord and satisfaction: a bona fide dispute over the amount owed can be settled by an agreed amount, and acceptance of that settlement generally bars further claims for the disputed balance.
Option 1: 'If the court determines that the services Agatha provided were only worth $100, the court will not enforce payment of anything over that amount as courts do not like bad bargains.' This statement misstates the effect of a settlement. Courts do not assess the wisdom of a bargain as a general rule; they enforce settlements once there is a valid accord and satisfaction. The mere assertion of a low value does not automatically invalidate a settlement, and the hypothetical $100 value does not automatically bar payment of the remaining $900 through a later court decision. The option wrongly conflates value evaluation with enforceability of a settlement.
Option 2: 'Regardless of what Ms. Hart pays, as this is a valid settlement contract, the most Agatha can recover is $400.' This is partly true in recognizing a settlement contract exists, but it oversimplifies. The amount Agatha can recover depends on the terms agreed upon and the acceptance of consideration in the accord and satisfaction. The statement incorrectly asserts a universal cap of $400, disregarding the negotiated nature of settlements and the possibility of further claims if the agreement were not properly constructed as a full accord and satisfaction.
Option 3: 'If Ms. Hart pays the $400, Agatha cannot seek payment for the additional $600.' This statement aligns with the doctrine of accord and satisfaction: once the parties settle for a specific amount and the payment is made and accepted, the debtor generally releases the creditor from further claims related to that contract, preventing a later attempt to recover the remaining disputed balance, provided the settlement was valid, voluntary, and the amount was accepted in full satisfaction.
Option 4: 'Agatha can seek payment for the remaining $600, as this is not a valid settlement contract.' This contradicts the typical effect of a settlement where there is a genuine dispute over the owed amount and the parties agree to a compromise. If a valid settlement was reached and accepted, Agatha cannot arbitrarily pursue the remaining balance, unless the settlement is rescinded or deemed invalid due to fraud, duress, or lack of consideration. The blanket claim that the settlement is automatically invalid ignores the core concept of accord and satisfaction and any evidence of a voluntary agreement.

STRAT 3410-003 Fall 2025 Exam #2- Requires Respondus LockDown Browser

查看解析

登录即可查看完整答案

类似问题

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?

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?

Jens owes JC Builders $5000. On discovering that JC Builders are in financial difficulty Jens offers to pay them $3,000 in full settlement of the debt. JC Builders agree to accept the $3,000 but a week later, claim the remaining $2,000. Will JC Builders succeed in their claim?

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?

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?

X owed Y $1,000. Under Ontario statute law if Y agrees to accept a lesser sum as payment in full then he can no longer make a claim for the full $1,000.

In a consumer society, many adults channel creativity into buying things

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单