Question

Chapter 13(3)

Accord and Satisfaction works to settle a genuine dispute as to an unliquidated debt.

1) Distinguish between liquidated and unliquidated debt.

2) Distinguish between the Accord and the Satisfaction.

Item

Chapter 13 (4)

The following is a real case.... A loyal employee of a small business is getting on in years. She is still a competent employee but would like to retire except for the fact that she needs the money. The employer would like to show his appreciation for her past years of service and so he tells her that if she would like to retire he will contimnue paying her 50% of her current salary for the next ten years. A few years later the employer sells his business to a young sharp entrepreneur. He hires a sharp accountant and orders him to "cut ALL unnecessary expenses. The accountant finds these checks going to this former employee and the sharp entrepreneur stops paying her IMMEDIATELY. The old lady sues the company. Does she have a case?

Item

Chapter 14(1) - Capacity

A contract entered into by a minor is generally voidable.

1) What is meant by a voidable agreement?

Answer 1

13(3)

1) The amount that is owned by one party to another party is known clearly by either party is called liquidated debt

The amount that is owned by one party to another party is notknown clearly by either party is called liquidated debt

In liquidated debt parties agree about the amount that how is owed but in unliquidated debt parties does not agree with each other.

2) According to the law

Accord is an agreement to discharge of obligation but satisfaction is a constitutional agreement which is binded by parties.

Accord can suspend the right to enforce an agreement but it cannot suspend the agreement. Satisfaction discharge both accord and the agreement.

13 (4) : In this situation case cannot be filed becuase there is no legal agreement is done by the company to the employeer that they will pay the expenses for 10 yeras but it is just a word which has got no documented proof. If there a valid documented agreement that the employeer can file case in the court.

14) 1 -

Voidable agreement: It is a valid contract which can be either affirmed or rejected by either on party which have these agreement. It depends on both the parties whether to continue or discontinue the contract or agrrement.