Question.

BACKGROUND INFORMATION

You work in the accounting department of the Walter Accounting Firm ("the Firm"). Your superior, Robert Walter, has given you the assignment to find out from the legal department how to deal with a legal matter regarding a former client, Jay Lemon. After you consult with the legal department, you are to draft a business memorandum addressed to your superior, Robert Walter, explaining the information and the options given to you by the legal department. Your superior also tell you that Ms. Lemon's case is not unique and that she is just one of many clients who pose an identical or similar problem for the Firm.

Your superior informs you that the former client, Jay Lemon, entered a written and signed contract with the Firm on January 1, 2021, under which Ms. Lemon agreed to pay the Firm. $10,000 for accounting services. The accounting services that Ms. Lemon contracted for were completed on March 1, 2021. Nevertheless, Ms. Lemon has informed the Firm that, in her opinion, the accountant that handled her account did not good job.As a result, she does not feel that she should pay the Firm the $10,000 as per the contract terms. She has been calling the office to argue about this matter for the past three weeks. Now, she claims that she is willing to send a check for $5000 (the amount that she thinks the services were worth) as full payment for the accounting services.

INSTRUCTIONS

(1) from the perspective of the Firm, consider the circumstances if she sends the $5000 and the Firm opts to accept or not to accept that payment, and then

(2) explain in a separate paragraph what this means to your Firm on a practical level.