Select your state

Creditor / Debtor

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 Arkansas, 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 by competent parties. The 'accord' is the agreement to discharge the original obligation and the 'satisfaction' is the performance of the new agreement. 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 new terms, and acceptance of those terms, which then must be executed. The new agreement effectively replaces the original obligation and, once satisfied, prevents any further claims based on the original terms. This principle is codified in Arkansas law under the Uniform Commercial Code for negotiable instruments (Ark. Code Ann. § 4-3-311) and is also applicable in general contract 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.

Creditor / Debtor

accord and satisfaction

Individual & Family Legal Plan

Articles

Arkansas State Code

Arkansas State Code

Creditor / Debtor

accord and satisfaction

Articles