What is the term for an agreement to substitute performance other than the required contract performance and the carrying out of that substitute?

• A. Valuable consideration
• B. Promissory estoppel
• C. Accord and satisfaction
• D. Noncompete agreement

Answer: (C)

The concept is accord and satisfaction. It refers to an arrangement where the parties agree to accept a different performance than what was originally due (the accord) and then carry out that substitute (the satisfaction). When the substitute is performed and accepted, the original obligation is discharged.

For example, if someone owes cash but agrees to pay with goods instead, and those goods are delivered and accepted, the debt is considered satisfied.

Valuable consideration is the value exchanged to support a promise, but it doesn’t describe substituting performance. Promissory estoppel involves enforcing a promise based on reliance when there’s no enforceable contract. A noncompete agreement is a restriction on competition, not a substitute performance arrangement.