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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 Michigan, 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 typically involves the debtor offering a payment or performance that is different from what was originally agreed upon, and the creditor accepting this as full satisfaction of the debt or claim. The new agreement, the 'accord,' and the execution of that agreement, the 'satisfaction,' together discharge the original contract or obligation. For an accord and satisfaction to be legally binding in Michigan, there must be a bona fide dispute over the claim or debt, a clear and unequivocal offer of partial payment or different performance, and an acceptance of that offer by the creditor. This principle is codified in Michigan's Uniform Commercial Code (UCC) under MCL 440.3311 for negotiable instruments, but it also applies to other types of contracts and obligations under general contract law.

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Contracts

accord and satisfaction

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Michigan State Code

Contracts

accord and satisfaction

Michigan State Code

Articles