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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 Maryland, accord and satisfaction is a legal concept that allows parties to settle a dispute by agreeing to terms that are different from the original contract or obligation. This agreement must be mutual, with both parties consenting to the new terms, which typically involve the creditor accepting a lesser amount or different performance than originally owed. The debtor must provide consideration, which can be in the form of money, goods, services, or some other benefit to the creditor. Once the accord (the agreement) is executed, and the satisfaction (the performance of the new agreement) is completed, the original obligation is considered settled. This principle is recognized under Maryland law and is enforceable if it meets the necessary legal requirements, including a clear and unequivocal offer and acceptance, proper consideration, and the intention to discharge the original obligation. It is codified under Maryland's Commercial Law in sections 3-311 of the Maryland Annotated Code.

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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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