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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 Hawaii, accord and satisfaction is recognized as a method to discharge a contract or settle a dispute by agreeing to provide something different from what was originally owed. This is typically used when there is a bona fide dispute over the debt or obligation. Under Hawaii law, for an accord and satisfaction to be valid, there must be a clear and unmistakable offer of the accord by the debtor and an acceptance by the creditor. The new agreement (the accord) and the performance of the new obligation (the satisfaction) effectively settle the original claim. The Uniform Commercial Code (UCC), which Hawaii has adopted, also addresses accord and satisfaction in the context of negotiable instruments under Section 3-311. This section allows a debtor to discharge a debt by sending a check that is conspicuously marked as 'payment in full' or with a similar notation, provided the creditor cashes the check. The creditor's action of cashing the check is deemed acceptance of the accord and satisfaction. However, there are specific requirements and exceptions under the UCC, so it is advisable to consult with an attorney to understand the full implications of engaging in an accord and satisfaction in Hawaii.

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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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Hawaii State Code

Creditor / Debtor

accord and satisfaction

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