What is the test for determining whether settlement or accord and satisfaction exist?
Alberta, Canada
The following excerpt is from Farmer v. Foxridge Homes Ltd., 1992 CanLII 6206 (AB QB):
The test for determining whether a settlement or accord and satisfaction exist is found in Mason v. Johnston (1893), 20 O.A.R. 412 [pp. 418-19]: "… If accord is a question of agreement, there must be either two minds agreeing, or one of the two persons acting in such a way as to induce the other to think that the money is taken in satisfaction of the claim and to cause him to act upon that view."
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