What is accord and satisfaction in contractual terms?
What will be an ideal response?
In some situations, one of the parties to a contract believes that he or she did not receive what he or she was due. This party may attempt to reach a compromise with the other party, e.g., by paying less consideration than was provided for in the contract. If the two parties agree to a compromise, a settlement of the claim has been reached. The settlement agreement is called an accord. If the accord is performed, it is called a satisfaction. This type of settlement is called an accord and satisfaction, or a compromise.
You might also like to view...
Why is depreciation expense added back to net income in the operating section of the indirect cash flow statement?
a. Depreciation expense represents cash outflows for a firm. b. Depreciation expense represents cash inflows for a firm. c. Depreciation expense represents a noncash expense that must be moved to the investing section of the cash flow statement. d. Depreciation expense represents a noncash expense that must be added to net income to cancel its affect within the net income calculation. e. Depreciation expense represents a cash expense that must be added to net income to cancel its affect within the net income calculation.
Which of the following is NOT a basic concept of total quality management?
A) continuous process improvement B) competitive supplier bidding C) performance measures D) customer focus E) involvement of the total workforce
Bond prices are stable over any five- to ten-year period
Indicate whether the statement is true or false.
LEAPS are a special type of option
A) that must be exercised within six months. B) that can only be exercised on the expiration date. C) that cannot be exercised for at least a year after it is is purchased. D) that may have an expiration date as long as three years.