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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 California, 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 is typically used when there is a dispute over the performance of a contract or the amount of a debt. Under California law, for an accord and satisfaction to be enforceable, there must be a bona fide dispute between the parties, an offer of performance (the 'accord') that is different from the original obligation, and the acceptance of that performance by the other party (the 'satisfaction'). The satisfaction effectively discharges the original obligation. The Uniform Commercial Code (UCC), which California has adopted, also addresses accord and satisfaction in the context of negotiable instruments under Section 3311. It is important for parties considering an accord and satisfaction to ensure that the agreement is clear, that there is proper consideration, and that the agreement is executed properly to avoid future disputes. An attorney can provide guidance on the enforceability of such agreements and help draft the necessary documentation to ensure legal compliance.

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Creditor / Debtor

accord and satisfaction

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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California State Code

California State Code

Creditor / Debtor

accord and satisfaction

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