accord and satisfaction meaning

  "accord and satisfaction" in a sentence
Noun: accord and satisfaction
  1. The settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt

Type of: settlement

Encyclopedia: Accord and satisfaction

The purchase by one party to a contract of a release from his obligations under it when the other party has already performed his side of the bargain. A release of this one-sided nature constitutes a unilateral discharge of the contract; unless granted by deed, it can at common law be effected only by purchase, i.e. by a fresh agreement (accord) for which new consideration (satisfaction) is given. If, for example, A is due to pay £1000on a particular date to Bbfor contractual services rendered, B might agree to accept £900 paid on an earlier date, the earlier payment constituting satisfaction. Compare BILATERAL DISCHARGE. See also (PROMISSORY) ESTOPPEL.


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  1. An exception to this rule holds for settlements, such as an accord and satisfaction.
  2. Traditional court rulings have treated the tender of the check as the offer of an accord and satisfaction.
  3. An exception to the rule of adequacy is money, whereby a debt must always be paid in full for " accord and satisfaction ".
  4. Gamble of course argued that the banking of the cheque was accord and satisfaction for the account and denied any liability for the remaining balance.
  5. If the lender agrees to reduce the closing costs by an extra $ 1000 and the borrowers agree, then there has been an accord and satisfaction.

Related Words

  1. accompt meaning
  2. accomptable meaning
  3. accomptant meaning
  4. accon meaning
  5. accord meaning
  6. accord with meaning
  7. accord with sth meaning
  8. accordable meaning
  9. accordance meaning
  10. accordance of rights meaning
PC Version