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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 Hawaii, accord and satisfaction is recognized as a method to discharge a contract or settle a dispute by agreeing to provide and accept performance that is different from what was originally agreed upon. This concept is governed by Hawaii Revised Statutes Section 673-3111, which is part of Hawaii's Uniform Commercial Code. The statute specifically applies to the resolution of disputed claims concerning money owed. For accord and satisfaction to be valid, the debtor must in good faith tender an instrument to the creditor with a conspicuous statement that the instrument is in full satisfaction of the debt, and the creditor must obtain payment of the instrument. This means that if a creditor cashes a check or accepts a payment that is clearly marked as full payment for a disputed claim, the original obligation is considered settled. It's important to note that this applies only when there is a bona fide dispute over the claim or debt. If these conditions are met, the accord and satisfaction can serve as a defense to any subsequent claim for the original amount owed.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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