Furnishings Depot is a home supply and design store. It supplies both installation and product from kitchens to bathrooms. Its staff helps customers pick products and then contracts for their installation if necessary. Th e Miltons wanted new carpeting and venetian blinds to update their home. Th ey purchased carpeting for their living and dining rooms along with specially designed blinds. Th e total cost of the supplies and installation was $8,000. Th e Miltons fi nanced the project with Furnishings Depot where they were required to pay $500 a month until the balance was paid. A dispute arose as to whether the alcove in the dining area was included in the price. Furnishings Depot claims it was not. Th e Miltons stopped paying on the installment contract. In an eff ort to settle the matter, the parties agreed to include the alcove for another $300. Furnishings thought they had an agreement, but the Miltons failed to pay any further payments. Th e agreement for the additional $300 was not in writing. Furnishings sued the Miltons. What issues can be raised by the parties to the transaction?
Assume the same facts from Exercise 3 above except that the Miltons tender a check in the amount of $5,000 and wrote on the back “Full and fi nal payment of all obligations with Furnishings Depot.” Furnishings crossed out the language the Miltons wrote on the back of the check and cashed it. Was the contract between the parties discharged? What would each party argue to a judge? Explain your response.