Part2 -Tom Victim v Big Hands Insurance Company

Tom Victim was involved in a car accident.He was seriously injured.Tom and his lawyer are seeking $750,000 fromBad Driver and Bad's insurance company, Big Hands Insurance.Big Hands Insurance is offering $250,000 to Tom Victim.It seems both sides are entrenched as Big Hands and their lawyers truly believe Tom's claim is not worth more than $250,000.

After a few months of back and forth negotiation and with a trial date coming soon, Big Hands offers to settle thecase for $350,000.Tom says he won't take a penny less than $650,000.The day before trial Tom offers to settle for $600,000 and Big Hands Insurance offers $450,000.Tom agrees to settle theclaim for $475,000.

3.Before a settlement was reached - when the insurance company offered Tom $250,00 and his lawyers stated he would not take a penny less than $650,000, did that illustrate a "liquid" debt (obligation) or an "unliquid" debt?Explain the difference.

4.When a settlement was reached and Tom agreed to the $550,000,was this an accord and satisfaction?Explain why or why not.