Accord And Satisfaction
The accord is the agreement on the terms, and the satisfaction is the performance of 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.
An accord and satisfaction may occur in debt negotiations whereby the original credit agreement between the bank and Company A is revised (by stretching out payments, or reducing an interest rate) and Company A delivers on the new terms. If for some reason Company A does not deliver on the new terms, it may be liable for the original contract, because it did not satisfy the terms of the accord.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
accord and satisfaction — n. A means of ending a dispute by forming an agreement (the accord) that one party will pay the other some consideration (the satisfaction, often less than the amount originally agreed to) and that this will discharge any remaining obligation.… … Law dictionary
Accord and satisfaction — bezeichnet im englischen Vertragsrecht einen Vertragstyp, bei dem der Schuldner durch einen neuen Vertrag eine Einrede gegen den alten Vertrag erwirbt. Der Schuldner kauft sich dabei von seiner Verpflichtung frei, dies geschieht jedoch nicht in… … Deutsch Wikipedia
Accord and satisfaction — In contract law, accord and satisfaction is the purchase of the release from a debt obligation. The payment is typically less than what is owed and is not paid by the actual performance of the original obligation. The accord is the agreement to… … Wikipedia
accord and satisfaction — A method of discharging a claim whereby the parties agree to give and accept something in settlement of the claim and perform the agreement, the accord being the agreement and the satisfaction its execution or performance, and it is a new… … Black's law dictionary
accord and satisfaction — A device enabling one party to a contract to avoid an obligation that arises under the contract, provided that the other party agrees. The accord is the agreement by which the contractual obligation is discharged and the satisfaction is the… … Accounting dictionary
accord and satisfaction — A device enabling one party to a contract to avoid an obligation that arises under the contract, provided that the other party agrees. The accord is the agreement by which the contractual obligation is discharged and the satisfaction is the… … Big dictionary of business and management
accord and satisfaction — noun the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt • Hypernyms: ↑settlement * * * accord and satisfaction (commerce) The process by which a party agrees to release the other party from… … Useful english dictionary
accord and satisfaction — An agreement to accept less than is legally due in order to conclude a dispute. The new agreement (i.e., the accord) and the payment (i.e., the satisfaction, when made) replace the original obligation. See novation … Business law dictionary
accord and satisfaction — An executed agreement of accord. 1 Am J2d Accord § 1. In order to be a satisfaction there must be an accord or agreement to accept in extinction of the obligation something different from or less than that which the creditor is claiming or is… … Ballentine's law dictionary
accord and satisfaction — agreement whereby both sides waive part of their claims (Law) … English contemporary dictionary