accord and satisfaction
Noun: 1. A legal discharge of a debt or claim: "Accord and satisfaction" is a legal concept. It refers to a specific agreement between two parties to settle a debt or claim. In this agreement, the creditor (the party owed money) accepts a different performance (often a payment of a lesser amount) from the debtor (the party who owes money) as full and final settlement of the original obligation. The "accord" is the new agreement to accept the alternative. The "satisfaction" is the actual performance (e.g., the payment) of that new agreement, which then legally extinguishes the original debt.
This term is used almost exclusively in formal, legal, and business contexts to describe a completed settlement transaction. * It functions as a compound noun, typically treated as a singular concept. * It is often used with verbs like "reach," "constitute," "serve as," or "be considered."
- Noun:
- The parties reached an accord and satisfaction, with the contractor accepting a reduced final payment to resolve the dispute.
- His payment of $750, which she cashed, was deemed an accord and satisfaction of the $1,000 invoice.
- The letter stated that the enclosed check, if deposited, would be considered full accord and satisfaction for all outstanding balances.
- Legal Defense: In a lawsuit for non-payment, a defendant may raise "accord and satisfaction" as an affirmative defense, arguing the claim was already legally settled.
- The company's defense was based on accord and satisfaction, claiming the matter was resolved when the client cashed the settlement check.
- Accord (n): The agreement itself to accept an alternative performance in settlement of an existing claim.
- Satisfaction (n): The execution or performance of the accord (e.g., the payment made and accepted).
- Settlement (n): A broader term for an agreement that resolves a dispute, which may be achieved through various means, including accord and satisfaction.
- Release (n): A document that formally states a claim is discharged; often executed alongside or as part of an accord and satisfaction.
- Settlement agreement
- Discharge of debt
- Compromise settlement
- Legal Formality: For an accord and satisfaction to be valid, there must typically be a bona fide dispute over the amount owed or the obligation itself, and the creditor must clearly agree to accept the lesser sum as full payment.
- Not a General Phrase: This is a fixed legal term of art. It is not used in everyday conversation to mean general agreement or happiness.
- the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt