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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 Louisiana, accord and satisfaction is recognized as a method to discharge a contract, claim, or obligation by agreeing to provide something different from what was originally due. This is typically used to settle disputes where the debtor offers to pay a lesser amount than what is claimed by the creditor, and the creditor accepts this payment as full satisfaction of the debt. The concept is governed by Louisiana Civil Code. For an accord and satisfaction to be valid, there must be a clear and unequivocal offer of performance that is different from what is due, and an acceptance of that performance by the creditor as full satisfaction of the obligation. It is important to note that both parties must agree to the new terms, and the acceptance must be free from any vices of consent, such as error, fraud, or duress. Once an accord and satisfaction is properly executed, the original obligation is extinguished and cannot be pursued further legally.

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Creditor / Debtor

accord and satisfaction

Individual & Family Legal Plan

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Creditor / Debtor

accord and satisfaction

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