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accord and satisfaction

Accord and satisfaction is an enforceable agreement in which the parties agree to discharge a contract, claim, or obligation on terms that differ from the original terms of the contract, claim, or obligation.

In Alabama, accord and satisfaction is a legal concept that allows parties to settle a dispute by agreeing to terms that are different from the original contract or obligation. This agreement must be voluntary and made by competent parties. To be enforceable, there must be a bona fide dispute or uncertainty regarding the original obligation, an offer of performance (the 'accord') that is accepted by the other party, and the performance of the new agreement (the 'satisfaction'). The satisfaction effectively discharges the original contract or claim. This principle is codified in Alabama under the Uniform Commercial Code for negotiable instruments (Ala. Code § 7-3-311) and also recognized in common law for other types of disputes. It is important to note that the accord must fully satisfy the new agreement, and once it is executed, the original obligation cannot be enforced.

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Contracts

accord and satisfaction

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Alabama State Code

Alabama State Code

Contracts

accord and satisfaction

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