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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 Arizona, accord and satisfaction is recognized as a method to discharge a contract or settle a dispute by agreeing to provide and accept something different from the original obligation. This concept is governed by both common law and the Uniform Commercial Code (UCC) as adopted in Arizona. Under the UCC, which applies to transactions in goods, accord and satisfaction can occur if a person in good faith tenders an instrument to a claimant as full satisfaction of a claim, and the claimant obtains payment of the instrument. The specifics of the agreement must be clearly stated and agreed upon by both parties. It is important to note that the execution of an accord (the agreement) does not discharge the original contract; only the satisfaction (the performance of the accord) extinguishes the original obligation or claim. If a dispute arises regarding an accord and satisfaction, it may be necessary to consult with an attorney to understand the enforceability and implications of the specific terms agreed upon by the parties.

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Creditor / Debtor

accord and satisfaction

Individual & Family Legal Plan

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Creditor / Debtor

accord and satisfaction

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