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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 California, 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 is typically used when there is a dispute over the performance of a contract or the amount of a debt. Under California law, for an accord and satisfaction to be enforceable, there must be a bona fide dispute between the parties, an offer of performance (the 'accord') that is different from the original obligation, and the acceptance of that performance by the other party (the 'satisfaction'). The satisfaction effectively discharges the original contract or obligation. This principle is codified in the California Civil Code, particularly in sections 1521 to 1524, which outline the requirements and effects of an accord and satisfaction. It is important for parties considering this route to ensure that all elements are met and to document the agreement properly to avoid future disputes over the terms of the settlement.

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Contracts

accord and satisfaction

Individual & Family Legal Plan

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California State Code

California State Code

Contracts

accord and satisfaction

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