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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 Indiana, accord and satisfaction is recognized as a method to discharge a contract or settle a dispute by agreeing to provide something different than what was originally owed. This is typically used when there is a bona fide dispute over the amount due or the performance required under the original contract. For accord and satisfaction to be legally binding, there must be an offer (the 'accord') of different performance than what was originally agreed upon, and the acceptance of that offer ('satisfaction') by the other party. Once both parties perform the agreed-upon terms, the original obligation is considered settled. This concept is governed by Indiana contract law and is also reflected in the Uniform Commercial Code (UCC) for transactions involving the sale of goods, which Indiana has adopted. It's important to note that the agreement must be clear, and the acceptance must be unequivocal for the accord and satisfaction to be enforceable.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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