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 North Carolina, 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 debt or obligation. Under North Carolina General Statutes, specifically N.C.G.S. § 1-539.1, a check or other form of payment can be used as an accord and satisfaction if it is clearly communicated that acceptance of the payment is intended to resolve the entire dispute. The creditor must also provide written consent to the terms of the accord and satisfaction. If these conditions are met, the acceptance of the payment operates as a full satisfaction of the claim. It is important to note that the specific terms and conditions of the accord and satisfaction must be clearly stated and agreed upon by all parties involved for it to be enforceable.