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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 York, 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. For an accord and satisfaction to be enforceable, there must be a bona fide dispute regarding the original obligation, a clear and unequivocal offer of the accord by the debtor, and an acceptance by the creditor. The acceptance must be with the understanding that the accord is in full satisfaction of the disputed claim. Once the accord and satisfaction is completed, the original contract or obligation is discharged, and the creditor cannot pursue further action on the original terms. This principle is codified in the New York General Obligations Law, which provides the legal framework for such agreements.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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