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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 Minnesota, accord and satisfaction is a 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 be voluntary and made by competent parties. To be enforceable, the new agreement (the 'accord') must be executed with the intent to resolve the dispute, and the performance of the new agreement (the 'satisfaction') must be completed. The satisfaction effectively discharges the original contract or obligation. Minnesota follows the Uniform Commercial Code (UCC) for accord and satisfaction in the context of negotiable instruments, which is codified in Minnesota Statutes, Section 336.3-311. Under this statute, a debtor can discharge a debt by sending a check that is conspicuously marked with a statement that it is meant to be in full satisfaction of the debt. If the creditor cashes the check, the debt is considered settled. For non-negotiable instrument cases, common law principles of contract apply, and the agreement must meet the general requirements for contracts, including offer, acceptance, and consideration.

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Contracts

accord and satisfaction

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Minnesota State Code

Minnesota State Code

Contracts

accord and satisfaction

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