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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 New Jersey, 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 voluntary and made with the intention of resolving the dispute. For an accord and satisfaction to be enforceable, there must be a bona fide dispute regarding the original obligation, an offer of payment (the accord) that is accepted by the other party, and the performance of the new agreement (the satisfaction). Once the satisfaction is completed, the original obligation is discharged. It is important to note that the new agreement must provide some consideration – this means that there must be something of value exchanged between the parties. The Uniform Commercial Code (UCC), which New Jersey has adopted, also addresses accord and satisfaction in the context of business transactions involving negotiable instruments under N.J.S.A. 12A:3-311.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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