accord and satisfaction

Also found in: Legal, Financial, Wikipedia.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.accord and satisfaction - the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debtaccord and satisfaction - the settlement of a debt by paying less than the amount demanded in exchange for extinguishing the debt
settlement - a conclusive resolution of a matter and disposition of it
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive
A recent opinion from the Court of Appeals for the Seventh Circuit, discusses the legal principle of "accord and satisfaction"; how a debtor and creditor may rewrite a contract to settle an account dispute without court intervention.
Accord and satisfaction is generally defined as a "substitute contract between a debtor and creditor for the settlement of a debt for a different amount than allegedly owed." Accord and satisfaction has' evolved from common law principles that encourage parties to settle a disputed debt without judicial intervention.
A creditor cannot avoid an accord and satisfaction by either reserving his or her rights by writing on the check or by crossing out the full settlement language on the check.
Cashing checks may not be accord and satisfaction
Copyright © 2003-2025 Farlex, Inc Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.