This section contains the nature of the case and procedural background.

Flambeau (P) made a contract with Honeywell (D) to purchase computer equipment. The contract called for 60 payments over 60 months and included a clause that P was to receive $14,000 in computer programming services by October 1, 1976. P used part of the computer programming services by October 1, 1976, but stopped requesting programming services when it unilaterally decided they were not helpful. P then sent D a check for the remaining amount due under the prepay clause less $14,000 for unused programming services. The check was marked payment in full with an accompanying letter stating the reasons for the payment in full. D cashed the check and then told P to remit the balance due. P sued for a declaratory judgment that it owed nothing. Summary judgment was granted to P on grounds of an accord and satisfaction and D appealed. The appellate court overruled the lower court's judgment; a trial was held on the issue of accord and satisfaction.

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