Accord and satisfaction,
Definition of Accord and satisfaction:
Agreement between two parties to a contract, in which one party (which has a legal claim against the other) releases the other party from its obligations in return for some form of compensation. The agreement is the accord, and the compensation is the satisfaction..
An accord and satisfaction is a legal contract whereby two parties agree to discharge a tort claim, contract, or other liability for an amount based on terms that differ from the original amount of the contract or claim. Accord and satisfaction is also used to settle legal claims prior to bringing them to court.
The accord is the agreement on the new terms of the contract, and the satisfaction is the performance of those terms according to the agreement. When there is an accord and satisfaction, and the performance (or satisfaction) has been executed, all prior claims relating to the matter are extinguished.
How to use Accord and satisfaction in a sentence?
- You need to make sure that you do everything to live up to the accord and satisfaction so that you know the deal is done right.
- An accord and satisfaction in a new agreement that suspends the terms of an existing agreement in favor of a new one.
- The two parties reached an accord and satisfaction , in return for the royalties that the author received the distribution company would drop subsequent charges against the author.
- If a party fails to live up to the new agreement's terms, they may ultimately be liable for the more stringent terms of the original contract.
- As long as the parties in an accord and satisfaction meet the new terms, the previous agreement remains suspended.
- I was glad that we were going to be released from our contractual obligations, but not glad that we still had to deal with an accord and satisfaction agreement.
Meaning of Accord and satisfaction & Accord and satisfaction Definition