Accord and satisfaction
Definition
An agreement (accord) between two contracting parties to accept alternate performance to discharge a preexisting duty between them and the subsequent performance (satisfaction) of that agreement. An accord and satisfaction differs from a modification in that a modification immediately discharges a preexisting duty, whereas an accord and satisfaction does not discharge a preexisting duty until the agreed upon, alternate performance occurs.
Illustrative caselaw
See, e.g. Rose Inn of Ithaca, Inc. v. Great American Ins. Co., 75 A.D.3d 737 (N.Y. App. Div. 2010).
Definition from Nolo’s Plain-English Law Dictionary
An agreement to settle a contract dispute by accepting less than what's due. This procedure is often used by creditors who want to cut their losses by collecting as much money as they can from debtors who cannot pay the full amount.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:10 pm
