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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 Iowa, 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 meet certain criteria to be enforceable: there must be a bona fide dispute between the parties, an offer of payment (the 'accord') that is accepted by the other party ('satisfaction'), and the acceptance must be with the intention of resolving the dispute. Once the accord and satisfaction are completed, the original obligation is discharged, and the new agreement stands in its place. This concept is codified in Iowa's Uniform Commercial Code for negotiable instruments under Iowa Code § 554.3311, but it also applies more broadly to other types of contracts and obligations under general contract law principles.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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