Ruble Forest Products, Inc. (Ruble) (plaintiff) sold lumber to Lancer Mobile Homes of Oregon (Lancer) (defendant). Lancer failed to pay for the lumber. When Ruble complained of nonpayment, Lancer claimed some of the lumber had been defective. Lancer told Ruble that they would need to reach an agreement on the defective lumber before Lancer paid any of the amount that was due to Ruble. In response, Ruble sent a letter to Lancer stating that, in consideration for paying a portion of the total amount due, Ruble would provide Lancer with a “credit” of $2,500 by reducing the total by that amount. Lancer paid the reduced amount. Ruble then brought suit against Lancer for the remaining $2,500. Lancer argued that the $2,500 credit was a valid settlement of a disputed claim relating to the defective lumber. The lower court entered judgment in favor of Lancer. Ruble appealed.