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 Rhode Island, accord and satisfaction is recognized as a legal means to settle a dispute where the parties agree to new terms that differ from the original contract. This agreement allows the parties to discharge the original obligation. For accord and satisfaction to be valid, there must be a genuine dispute or uncertainty regarding the original obligation, an offer of partial payment or different performance (the 'accord'), and the acceptance of this offer by the other party (the 'satisfaction'). Once the satisfaction is executed, the original obligation is considered settled, and the debtor is released from further liability. This principle is governed by common law and is also reflected in the Uniform Commercial Code (UCC), which Rhode Island has adopted, specifically in the context of negotiable instruments under RI Gen Laws § 6A-3-311.