Sylvia refused and Barnett initiated a lawsuit. May Barnett enforce the original contract? Explain.

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Sylvia refused and Barnett initiated a lawsuit. May Barnett enforce the original contract? Explain.

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On November 23, Sylvia agreed to sell to Barnett her Buick automobile for $7,000, delivery and payment to be made on December 1. On November 26, Barnett informed Sylvia that he wished to rescind the contract and would pay Sylvia $350 if Sylvia agreed. She agreed and took the $350 cash. On December 1, Barnett tendered to Sylvia $6,650 and demanded that she deliver the automobile. Sylvia refused and Barnett initiated a lawsuit. May Barnett enforce the original contract? Explain.

Explanation & AnswerSolution by a verified expert

Explanation

Both parties agreed to enter into a valid accord and satisfaction, which results in discharge of performance from both parties. After entering into such an accord and satisfaction, the initial contract cannot be restored one sidedly.
Under section 281 of the Restatement (Second) of Contracts, it is mentioned that an accord is a contract in which an obliged promises that he will accept the performance that is in satisfaction of the existing duty of the obligor. The original obligation is discharged by the performance of the accord.

Verified Answer

It is a case of accord and satisfaction, so the original contract cannot be enforced by Individual B. In the case of accord and satisfaction, the parties enter into a new contract, which makes the previous contract unenforceable.

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