Select your state

Contracts

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 Virginia, 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 genuine dispute or uncertainty regarding the original obligation, an offer of partial payment or other consideration, and an acceptance of that offer as full settlement of the obligation. The party accepting the new terms must also provide something of value, which could be less than the amount originally owed, known as the 'accord.' Once the accord is executed, the 'satisfaction,' it discharges the original obligation. This principle is codified in Virginia under the Uniform Commercial Code for negotiable instruments (Va. Code Ann. § 8.3A-311) and is also applicable in other contractual disputes under common law.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Contracts

accord and satisfaction

Individual & Family Legal Plan

Articles

Virginia State Code

Virginia State Code

Contracts

accord and satisfaction

Articles