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 Nebraska, 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 original 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 Nebraska, it must meet certain requirements: there must be a bona fide dispute or uncertainty regarding the original obligation, the debtor must offer something of value in consideration for settling the dispute, and the creditor must voluntarily accept the offer as full settlement of the original claim. Once these conditions are met, the accord and satisfaction can be used as a defense in a legal action for the original claim. Nebraska follows the Uniform Commercial Code (UCC) for transactions involving goods, which also includes provisions for accord and satisfaction in commercial transactions.