[Anonymous]

Which of the following actions will result in the discharge of a party to a contract?

Prevention of

performance

Accord and

satisfaction

a.

No

No

b.

No

Yes

c.

Yes

Yes

d.

Yes

No

My answer is yes and no. Because Prevention of performance can discharge one party, but I thought accord and satisfaction forms a new contract but the parties are the same.

I don’t get it why the answer is yes and yes. Anyone can help?

[Marlya]

Accord and satisfaction DOES form a new contract, therefore the old contract is no longer valid. Just because the parties are the same does not make it a continuation of the original contract. Think of it as replacing the old contract, sort of like buying a car at a dealer, a couple years later you go back trade it in for a new car… once you leave with the new car you are no longer responsible for the old car payment, only the new car. Does that make sense?

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[Author]

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