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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 Oregon, accord and satisfaction is recognized as a method to discharge a contract or settle a dispute by agreeing to provide and accept something different from the original obligation. This legal concept is typically used when a debtor offers to pay a lesser amount than what is owed, and the creditor accepts this payment as full satisfaction of the debt. The new agreement, the 'accord,' and the execution of this agreement, the 'satisfaction,' together resolve the original obligation. For an accord and satisfaction to be legally binding in Oregon, there must be a bona fide dispute over the claim or debt, a clear and unequivocal offer of partial payment by the debtor, and an acceptance by the creditor that the partial payment is a full settlement of the entire obligation. The Uniform Commercial Code (UCC), which Oregon has adopted, also addresses accord and satisfaction in the context of negotiable instruments under ORS 73.0311. It is important for parties considering an accord and satisfaction to ensure that the agreement is clear and meets all legal requirements to avoid further disputes.

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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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