Select your state

Creditor / Debtor

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 Montana, 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 voluntary and made by competent parties. According to Montana Code Annotated (MCA) § 27-1-311, an accord is a contract to discharge an existing contractual or tort duty. Satisfaction is the execution or performance of such a contract. For an accord and satisfaction to be valid, there must be a genuine dispute or uncertainty regarding the original obligation, and the creditor must accept the new terms, which can be a different performance or a payment of a lesser amount, as full satisfaction of the original debt or claim. Once the new agreement is fulfilled, the original obligation is considered settled, and the debtor is released from further liability.

Legal Articles

State Statutes

Individual & Family Legal Plan

As a LegalFix member, you'll get expert legal services from a local law firm that treats you like an important client. Don't wait—be prepared for life's inevitable legal challenges starting today. And ask your employer, credit union, or membership group about preferred pricing opportunities.

Creditor / Debtor

accord and satisfaction

Individual & Family Legal Plan

Articles

Montana State Code

Montana State Code

Creditor / Debtor

accord and satisfaction

Articles