Consumer Law, Warranties agreements beyond contract

[denealb41]

In a case where a lesser amount is agreed upon by all parties than the stated contract amount, what is the legal term for this agreement.

 

[army judge]

In a case where a lesser amount is agreed upon by all parties than the stated contract amount, what is the legal term for this agreement.

Ahh, a very good question that takes an old lawyer back to 1st year of law school and CONTRACTS CLASS.
Hello, Professor Crownover, watch this. Thanks for pounding this stuff in my skull full of mush. LOL

You appear to be inquiring about "ACCORD AND SATISFACTION" as compared to a "MODIFICATION".

An agreement (accord) between two contracting parties to accept alternate performance to discharge a preexisting duty between them and the subsequent performance (satisfaction) of that agreement.

An accord and satisfaction differs from a modification in that a modification immediately discharges a preexisting duty, whereas an accord and satisfaction does not discharge a preexisting duty until the agreed upon, alternate performance occurs.

 

[Michael Wechsler]

To add to army judge's excellent explanation is the legal term "novation" which might also be relevant. In essence, it refers to legally replacing a first agreement with a second agreement. Thus you can think of this as a "full release" of the first agreement which is now replaced by the second agreement, which could be for less money or other terms. Thanks for also helping me clear out the cobwebs!

 

[army judge]

To add to army judge's excellent explanation is the legal term "novation" which might also be relevant. In essence, it refers to legally replacing a first agreement with a second agreement. Thus you can think of this as a "full release" of the first agreement which is now replaced by the second agreement, which could be for less money or other terms. Thanks for also helping me clear out the cobwebs!

Ahh, very good, Professor. It's always good to return to those golden days of yesteryear. I was almost stumped there, and my rusty gears just needed a little WD-40. LOL

 

[Betty3]

I was interested in the answer to that question myself.