Defendant issued a membership certificate to one Flowers providing for payment of $5000 in case of accidental death or $500 in case of death due to heart disease. Later Flowers was injured in an automobile accident and died an hour afterward. The beneficiary submitted proofs of loss, including a statement of a physician that death was caused by "coronary thrombosis. Shock from auto accident about one hour before death." Defendant sent to the beneficiary a draft for $500 clearly stating on its face that the endorsement of the check would be a settlement in full. After cashing the check, the beneficiary sued for an additional $4500; on appeal from judgment for defendant notwithstanding the verdict, held, reversed. Since defendant paid no more than it admitted was due to plaintiff, there was no consideration to support the attempted accord and satisfaction. One justice dissented. Kellogg v. Iowa State Traveling Men's Assn., (Iowa 1947) 29 N.W. (2d) 559.
L. B. Lea,
CONTRACTS--CONSIDERATION-PERFORMANCE OF ONE ALTERNATlVE WHEN THERE IS DISPUTE AS TO WHICH IS OWED,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol46/iss5/9