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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 Maryland, accord and satisfaction is a recognized legal principle that allows parties to settle a dispute by agreeing to terms that are different from the original contract or obligation. This agreement must be mutual, with both parties consenting to the new terms, which typically involve the creditor accepting a lesser amount or different performance than originally owed. The debtor must provide consideration, which can be in the form of money, goods, services, or some other benefit to the creditor. Once the accord (the agreement) is executed with the satisfaction (the performance of the new agreement), the original obligation is considered settled and cannot be pursued further in court. This principle is governed by Maryland contract law and is subject to the same defenses and requirements as other contracts, including the necessity of a meeting of the minds, legality, and capacity to contract.

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Contracts

accord and satisfaction

Individual & Family Legal Plan

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Maryland State Code

Maryland State Code

Contracts

accord and satisfaction

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