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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 South 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 differs from the original obligation. This concept is governed by both common law principles and statutes, such as the Uniform Commercial Code (UCC) which applies to certain transactions, particularly those involving the sale of goods. Under the UCC, Section 3-311, an accord and satisfaction can occur when a person in good faith offers a check or other instrument to a claimant as full satisfaction of a claim which is disputed as to validity or amount, and the claimant obtains payment of the instrument. The key elements include a bona fide dispute, an offer of payment that is expressly stated to be in full satisfaction of the dispute, and the acceptance and cashing of the check or instrument by the claimant. If these elements are met, the original obligation is discharged, and the accord and satisfaction can be used as a defense in court if the claimant later seeks to recover the original amount.

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Creditor / Debtor

accord and satisfaction

Individual & Family Legal Plan

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South-Carolina State Code

South-Carolina State Code

Creditor / Debtor

accord and satisfaction

Articles