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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 Arkansas, 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. Under Arkansas law, for an accord and satisfaction to be enforceable, there must be a bona fide dispute regarding the original obligation, an offer of payment (the accord) that is accepted by the other party (the satisfaction), and the acceptance must be with the intention of resolving the dispute. The payment offered in an accord and satisfaction is typically less than what is claimed to be owed, and the acceptance of this payment must be with the understanding that it settles the entire claim. Once the accord and satisfaction is completed, the original claim cannot be revived. This principle is codified in Arkansas Code Annotated § 4-3-311, which aligns with the Uniform Commercial Code as adopted by the state.

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Contracts

accord and satisfaction

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Arkansas State Code

Arkansas State Code

Contracts

accord and satisfaction

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