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 Arizona, accord and satisfaction is recognized as a method to resolve disputes and discharge contracts or obligations. This legal concept occurs when two parties agree to settle a claim by providing some performance different from what was originally due. The 'accord' is the agreement on the new terms of settlement, and the 'satisfaction' is the performance of those new terms. Under Arizona law, for an accord and satisfaction to be enforceable, there must be a bona fide dispute between the parties, clear and unequivocal communication of the offer of accord, and acceptance and performance of the satisfaction. Once the satisfaction is performed, the original obligation is discharged. This principle is codified in Arizona's Uniform Commercial Code, specifically A.R.S. § 47-3311 for cases involving negotiable instruments, and is also applicable in general contract law.