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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 Georgia, accord and satisfaction is recognized as a method to resolve disputes where parties agree to settle a contract, claim, or obligation differently from the original agreement. This is typically used when there is a bona fide dispute over the debt owed. Under Georgia law, for an accord and satisfaction to be valid, there must be an offer (the accord) and acceptance (the satisfaction), which results in the settlement of the original obligation. The new agreement must be executed in good faith, with consideration, and with the intent to resolve the dispute. Once the accord and satisfaction are completed, the original contract or obligation is discharged, and the parties are bound by the terms of the new agreement. It's important to note that the accord by itself does not discharge the original obligation; the obligation is discharged only when the accord is satisfied. This legal principle is codified in the Official Code of Georgia Annotated (O.C.G.A.) under Title 13, which governs contracts.

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Creditor / Debtor

accord and satisfaction

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Creditor / Debtor

accord and satisfaction