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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 Tennessee, 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. To constitute an accord and satisfaction, there must be a bona fide dispute between the parties regarding the obligation, an offer of payment (the accord) that is accepted by the creditor in satisfaction of the disputed claim, and the actual performance of the new agreement. The new agreement effectively discharges the original contract or claim. Tennessee law requires that the accord and satisfaction be clear and unequivocal, and it must be executed in good faith. This concept is recognized under Tennessee common law and is also codified in the Uniform Commercial Code (UCC) as adopted by Tennessee, specifically in the context of the resolution of disputes involving negotiable instruments under T.C.A. § 47-3-311.

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Creditor / Debtor

accord and satisfaction

As a LegalFix Member You Will Be an Important Client of Local Law Firms

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Tennessee State Code

Tennessee State Code

Creditor / Debtor

accord and satisfaction

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