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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 Illinois, accord and satisfaction is a recognized legal concept that allows parties to settle a dispute by agreeing to terms that are different from the original contract or obligation. This typically involves the debtor offering a different performance or payment, and the creditor accepting it as full satisfaction of the original debt or claim. For accord and satisfaction to be enforceable, there must be a bona fide dispute over the claim or debt, a clear and unequivocal offer of the new terms (the accord), and an acceptance of those terms (the satisfaction). Once the new agreement is executed, the original obligation is discharged. The Uniform Commercial Code (UCC), which Illinois has adopted, also addresses accord and satisfaction in the context of negotiable instruments under 810 ILCS 5/3-311. This statute provides specific requirements for accord and satisfaction by means of a negotiable instrument, such as a check, when a creditor and debtor are resolving a disputed claim.

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Creditor / Debtor

accord and satisfaction

Individual & Family Legal Plan

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Illinois State Code

Creditor / Debtor

accord and satisfaction

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