accord and satisfaction


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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
References in periodicals archive ?
The opinion reminds parties that an accord and satisfaction may be effected only where there is an honest dispute between the parties as to the amount due at the time payment was tendered.
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.