Question
High Plains Construction Company agreed to buy a backhoe for $102,000 from Tools-R-Us, Inc. High Plains tendered a check for $102,000 and picked up the
High Plains Construction Company agreed to buy a backhoe for $102,000 from Tools-R-Us, Inc. High Plains tendered a check for $102,000 and picked up the backhoe. The costs incurred by High Plains to pick up the backhoe were $2,000. The next day, the High Plains CEO stopped payment on the check and delivered a new check for $100,000. On the back of the check, the High Plains CEO wrote, Payment in Full for Backhoe Serial # 88130. Before Tool-R-Us, Inc. cashed the check, the check was endorsed by the Tool-R-Us CFO. In addition, the Tools-R-Us CFO crossed out the words written by the High Plains CEO and wrote: Accepted as Partial Payment. Tools-R-Us, Inc. sued High Plains Construction Company in Small Claims Court for $2,000. High Plains argues that Tools-R-Us acceptance and cashing of the check was an accord and satisfaction.
Explain the issues you identified.
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