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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 Ohio, 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. For an accord and satisfaction to be enforceable, there must be a bona fide dispute regarding the original obligation, an offer of performance (the 'accord') that is different from what was originally agreed upon, and the acceptance and execution of the performance (the 'satisfaction'). Once the satisfaction is completed, the original obligation is discharged. Ohio courts will enforce an accord and satisfaction if it meets these criteria and is supported by consideration, which means that there must be something of value exchanged between the parties. This concept is recognized under Ohio common law and is also codified in the Ohio Revised Code, specifically under sections dealing with negotiable instruments and payment methods, such as ORC 1303.40 regarding full payment checks, which can serve as an accord and satisfaction if certain conditions are met.

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Contracts

accord and satisfaction

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Contracts

accord and satisfaction

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