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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 Colorado, accord and satisfaction is a recognized 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, the new agreement (the 'accord') must be accompanied by consideration, which is something of value exchanged between the parties. Once the terms of the accord are fulfilled (the 'satisfaction'), the original obligation is considered discharged. This concept is often used in cases where there is a dispute over the amount owed or the performance due under a contract. The Uniform Commercial Code (UCC), adopted in Colorado, also addresses accord and satisfaction in the context of negotiable instruments under Section 3-311. It specifies that a person against whom a claim is asserted can discharge the claim by agreeing to a different performance than originally owed, and this performance is then executed. It's important to note that certain formalities may be required for an accord and satisfaction to be legally binding, and it is advisable to consult with an attorney to ensure that these are met.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction