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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 Indiana, accord and satisfaction is recognized as a method to discharge a contract or settle a dispute by agreeing to provide and accept performance that is different from what was originally agreed upon. This is typically used when there is a bona fide dispute over the amount owed or the performance due under a contract. For accord and satisfaction to be legally binding, there must be an offer (the 'accord') of different performance, an acceptance of that offer, and consideration – which means each party must receive something of value. Once the new agreement is fulfilled ('satisfaction'), the original contract or obligation is considered settled. This principle is codified in Indiana Code § 26-1-3.1-311, which aligns with the Uniform Commercial Code as adopted by the state. It is important to note that the terms of the accord must be clear and unequivocal, and the satisfaction must be executed in accordance with the agreed terms for the accord and satisfaction to be enforceable.

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Creditor / Debtor

accord and satisfaction

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Creditor / Debtor

accord and satisfaction

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