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An offer to perform a certain act to fulfill a contract is a tender ofperformance. If a person who must perform an act makes a tender ofperformance and is rejected, that person is excused from fulfilling thecontract. The same principle does not apply to debts. An offer to pay acertain amount to fulfill a contract is a tender of payment. If a personmakes a tender of payment and is rejected, that person is not excusedfrom the debt. He or she is only excused from paying further interest onthe debt.Example 5. Kenneth Hanson owed Carla Miller $500, which wasdue on the first of July. Kenneth did not tender payment until thefirst of August. Carla refused to take the money at that time, saying,“You didn’t pay the money whenit was due. Therefore, I’m going tosue you.”Kenneth still owes Carla $500. IfCarla did sue, she could collect the $500plus interest at the legal rate only for theone month between the due date and theactual tender of payment.The person offering to pay the requiredamount of money must offerlegal tender ; that is, the person mustoffer U.S. coins or currency. Offering acheck is not a valid tender of payment,even if it is certified. However, the personwho offered the check must be givenreasonable time to obtain legal tender.Discharge byAgreementContracts are created by mutualagreement and may be terminated bymutual agreement.Example 6. Jodi Plume has always admired Mark Jackson’s redconvertible. At school, she hears a rumor that Mark wants to sellhis car. Jodi approaches Mark and offers him $6,000 for the car.Although he really had not planned to sell his car, Mark agreeswhen he hears such a high offer. Later that night, Jodi telephonesMark when she realizes that she can’t afford the car. Mark ishappy to call off the agreement because he has decided he wantsto keep his car, after all.DAMAGED GOODSSometimes purchasedgoods are damaged afterthey are sold but beforethey are delivered. If thebuyer agrees to acceptthe altered goods, isthe original contractdischarged?Chapter 11: How Contracts Come to an End 229