13:11
lawguy we're nearly stats twins :D
Warning
Info
LSDefine
Simple English definitions for legal terms
accord and satisfaction
Read a random definition: dilatory fiduciary
A quick definition of accord and satisfaction:
Accord and satisfaction is when two people agree to change what they originally promised to do for each other. They make a new agreement (called the accord) and when they both do what they agreed to do, the original promise is considered fulfilled (called the satisfaction). This is different from just changing the original promise because the original promise is not considered fulfilled until the new agreement is completed.
A more thorough explanation:
Accord and satisfaction is a legal term that refers to an agreement between two parties to accept a different performance to fulfill a pre-existing obligation. The new performance is called the accord, and the fulfillment of that agreement is called the satisfaction.
For example, let's say that John owes Jane $100 for a service she provided. However, John cannot pay the full amount at once. So, they agree that John will pay $50 now and the remaining $50 in two weeks. This agreement is the accord, and John's payment of $50 is the satisfaction.
An accord and satisfaction is different from a modification because a modification immediately discharges the pre-existing obligation, while an accord and satisfaction only discharges the obligation once the agreed-upon performance occurs.
One example of an accord and satisfaction case is the Rose Inn of Ithaca, Inc. v. Great American Ins. Co. In this case, the insurance company and the hotel had a dispute over the amount of coverage for damages caused by a storm. They eventually reached an accord where the insurance company would pay a certain amount, and the hotel would release any further claims. The payment was the satisfaction of the accord.