accord and satisfaction

A method of discharging a claim whereby the parties agree to give and accept something in settlement of the claim and perform the agreement, the "accord" being the agreement and the "satisfaction" its execution or performance, and it is a new contract substituted for an old contract which is thereby discharged, or for an obligation or cause of action which is settled, and must have all of the elements of a valid contract. Holm v. Hansen, Iowa, 248 N.W.2d 503, 506.

An executory bilateral contract of "accord" is an agreement embodying a promise, express or implied, to accept at some future time a stipulated performance in satisfaction or discharge in whole or in part of any present claim, cause of action or obligation, and a promise express or implied to render such performance. Such arises where parties, by a subsequent agreement, have satisfied the former one, and the latter agreement has been executed. The execution of a new agreement may itself amount to a satisfaction, where it is so expressly agreed by the parties; and without such agreement, if the new promise is founded on a new consideration, in which case the taking of the new consideration amounts to the satisfaction of the former contract. Accord and satisfaction may also arise in a criminal case.

See e.g. Mass.Gen.L. c. 276, No. 55.

In some jurisdictions, novation is a species of accord and satisfaction.

See compromise and settlement

- novation

- satisfaction

- settlement

+ accord and satisfaction

An "accord" is an agreement whereby one of parties undertakes to give or perform, and other to accept in satisfaction of liquidated or disputed claim arising in either contract or tort something different from what he is or considers himself entitled to; and "satisfaction" is execution or performance of agreement. Harris, Upham & Co., Inc. v. Ballantyne, Tex.Civ.App., 538 S.W.2d 153, 158.