Is the tutor entitled to recover the remaining $200 after accepting the bike in lieu of the $500 bonus?

• A. No, because the tutor accepted the bike instead of the bonus.
• B. Yes, the original bonus remains due despite the acceptance of the bike.
• C. No, because the contract requires writing for modifications.
• D. Yes, because the tutoring was completed.

Answer: (A)

The key idea is accord and satisfaction. If a creditor agrees to accept a different performance in full settlement of a debt, and that substitute performance is accepted and completed, the original obligation is discharged.

Here, the tutor was promised a $500 bonus. Instead, the employer offers a bike as full satisfaction of that bonus, and the tutor accepts the bike. By accepting and taking final delivery of the bike, the tutor has agreed to settle the claim with the substituted performance, so the $500 debt is discharged. Therefore, there isn’t a remaining $200 to recover—the accord and satisfaction ends the obligation.

The tutoring completion by itself doesn’t create a separate entitlement to the extra amount once the substituted payment was accepted. The other choices don’t fit because they ignore the effect of the settled, substituted performance.