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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 Utah, 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. The new agreement, known as the 'accord,' and the performance of it, the 'satisfaction,' must be clearly agreed upon by all parties involved. Once the satisfaction is completed, the original obligation is considered settled. This concept is governed by Utah's common law, as well as the Uniform Commercial Code (UCC) for transactions involving the sale of goods, which Utah has adopted. Specifically, under Utah Code Ann. § 70A-3-311, an accord and satisfaction can occur when a person against whom a claim is asserted proves that they in good faith tendered an instrument to the claimant as full satisfaction of the claim, the amount of the claim was unliquidated or subject to a bona fide dispute, and the claimant obtained payment of the instrument. It's important to note that specific requirements must be met for an accord and satisfaction to be legally binding, and it is advisable to consult with an attorney to ensure that these requirements are satisfied.

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Creditor / Debtor

accord and satisfaction

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Creditor / Debtor

accord and satisfaction

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