Crosby and Dash entered into a signed written agreement for Dash to cut down and

Question

Crosby and Dash entered into a signed written agreement for Dash to cut down and remove all the trees on the southeast side of Crosby’s lot at a cost of $750 for each large tree removed and $500 for each small tree removed.   Dash completed the job and presented a bill for $3,250 to Crosby (for 3 large trees and 2 small trees). Crosby tells Dash that all 5 of the trees were small trees so he only owes him $2,500. Crosby and Dash cannot agree on how much is owed. (There was no definition of small or large tree in the contract.) They choose to form a new agreement for Crosby to pay Dash an agreed-upon amount of $2,800. Crosby pays the $2,800 to Dash.Under these circumstances, which of the following statements is true:

A.The new agreement is enforceable under the doctrine of past consideration.

B.The new agreement is not enforceable due to the preexisting duty rule.

C.The new agreement is not enforceable because it is an adhesion contract.

D.The new agreement is not enforceable because it is an illusory promise.

E.The new agreement is enforceable as an accord and satisfaction.

Explanation / Answer

E.The new agreement is enforceable as an accord and satisfaction.

Under these circumstances, out of following statements the new agreement is enforceable as an accord and satisfaction is true. As, there is an accord between Crosby and Dash by creating a substitute offer in full satisfaction from both the parties of the claims, along with declaration of amount and conditions.

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