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accord and satisfaction

Accord and satisfaction is an enforceable agreement in which the parties agree to discharge a contract, claim, or obligation on terms that differ from the original terms of the contract, claim, or obligation.

In Washington State, accord and satisfaction is a legal concept that allows parties to settle a dispute by agreeing to terms that are different from the original contract or obligation. This is typically used when there is a disagreement about the performance of a contract or the amount of a debt. Under Washington law, for accord and satisfaction to be valid, there must be a bona fide dispute between the parties, an offer of payment (the 'accord') that is different from the original obligation, and an acceptance of that offer (the 'satisfaction'). Once the new agreement is executed, the original contract or obligation is discharged. The Uniform Commercial Code (UCC), which Washington has adopted, also addresses accord and satisfaction in the context of negotiable instruments under RCW 62A.3-311. It specifies that a person against whom a claim is asserted can discharge the obligation by paying a lesser amount than the creditor claims, if the creditor agrees to accept this in satisfaction of the claim and if the payment is made in good faith as full satisfaction.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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