Toughones, a car part manufacturer, signed a contract to license computer software from Vizera Inc. for $250,000. This software is to be used to keep track of inventory, accounts receivable, and other financial data. After the software was installed, the computer system worked, but it had a few glitches. Toughones refused to pay the full amount mentioned in the contract. To settle the dispute, the parties agree that $180,000 is to be paid as full and final payment for the software. Toughones paid $180,000 as agreed. What kind of agreement did Toughones and Vizera reach in the end?

Question

Business

Kyler Wilkerson

12 November, 05:16

Toughones, a car part manufacturer, signed a contract to license computer software from Vizera Inc. for $250,000. This software is to be used to keep track of inventory, accounts receivable, and other financial data. After the software was installed, the computer system worked, but it had a few glitches. Toughones refused to pay the full amount mentioned in the contract. To settle the dispute, the parties agree that $180,000 is to be paid as full and final payment for the software. Toughones paid $180,000 as agreed. What kind of agreement did Toughones and Vizera reach in the end?

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Answers (1)

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Wilber · Answer 1

A) accord and satisfaction

Explanation:

In contract law, an accord and satisfaction agreement is a binding contract where the parties involved in a previous contract agree to discharge any type of tort claim or other type of liability claim resulting from the breach of the original contract. The terms of the accord and satisfaction agreement generally differ from the terms of the original contract specially regarding the amount of money involved. It is basically a way of settling a dispute without having to spend money in court.