Accord and Satisfaction
What does Accord and Satisfaction mean?
Accord and satisfaction is when two parties in a legal dispute agree to certain terms to settle the dispute and end it all together. The "accord" is the mutual agreement between the two, and the "satisfaction" is the carrying out or the execution of the agreement itself. Accord and satisfaction thereby throws out the old contract that the two parties had together and replaces it with a new contract, settling the dispute and agreeing with it on both sides.
What Constitutes an Accord and Satisfaction
To participate in an accord and satisfaction, two parties must be in a valid dispute and want to come to some sort of agreement to end their ongoing troubles between each other. These disputes can range from just about anything - to failure to pay for goods and services, to motor collisions, to unfinished construction or projects. The resolution of these settlements are not always monetary, either. They can be as specific as the case and parties decide it to be.
An accord and satisfaction can only be allowed between two sane, capable parties, that are able to make adult-like and rational decisions. Someone who is mentally challenged or not considered sane cannot be a viable party, nor can an infant child. However, if the case concerns that of an insane person or a minor, they can be represented by a guardian or someone who will make the decisions for them on their behalf.
All in all, an accord and satisfaction is simply a new contract between two parties. Considering the seriousness of a legal contract, all items must be presented that are outlined in the contract, and the settlement must be presented clearly and delivered fully to be considered an accord and satisfaction. Once this is complete, the dispute is final, leaving no more room for interpretation or no more additional matters that can be presented later on. All settlements concerning that particular dispute are agreed upon and final.
Category: Contract Law