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 Virginia, accord and satisfaction is a recognized legal principle 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 with the intention of resolving the dispute. For accord and satisfaction to be enforceable, there must be a genuine dispute or uncertainty regarding the original obligation, an offer of partial payment or different performance (the 'accord'), and the acceptance of this offer by the other party (the 'satisfaction'). Once the satisfaction is completed, the original obligation is discharged. This principle is codified in Virginia under the Uniform Commercial Code for negotiable instruments (Va. Code Ann. § 8.3A-311) and also applies to other types of contracts and obligations under general contract law.