District of Columbia Checklist of Matters to be Considered in Drafting an Accord and Satisfaction Agreement

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Description

An accord and satisfaction is a method of discharging a contract, or settling a cause of action arising either from a contract or a civil wrong, by substituting for the contract or cause of action an agreement for its satisfaction and the performance of the substituted agreement.

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FAQ

And satisfaction refers to the agreement () between two contracting parties to accept alternate performance to discharge a pre-existing duty between them and the subsequent performance (satisfaction) of that agreement. The new performance is called the .

And satisfaction is a settlement of an unliquidated debt. For example, a builder is contracted to build a homeowner a garage for $35,000. The contract called for $17,500 prior to starting construction, to disburse $10,000 during various stages of construction, and to make a final payment of $7,500 at completion.

An and satisfaction is a new agreement that suspends the terms of an existing agreement in favor of a new one. The is the agreement on the new terms of the contract, and the satisfaction is the performance of those terms ing to the agreement.

If the lender agrees to reduce the closing costs by an extra $1000 and the borrowers agree, then there has been an and satisfaction.

The is the new agreement between the parties, and the satisfaction is the performance of the obligations under the agreement. An and satisfaction typically involves the payment of money or other consideration in exchange for the resolution of the dispute.

Under most state law, a valid and satisfaction requires four elements as a minimum, usually, (1) proper subject matter, (2) competent parties, (3) meeting of the minds of the parties and (4) adequate consideration.

An and satisfaction differs from a modification in that a modification immediately discharges a pre-existing duty, whereas an and satisfaction does not discharge a pre-existing duty until the agreed upon, alternate performance occurs.

An and satisfaction occurs when the parties involved in a dispute reach a new agreement to resolve the dispute. This agreement may involve a compromise, such as a payment of less than the full amount owed or a release of certain claims.

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District of Columbia Checklist of Matters to be Considered in Drafting an Accord and Satisfaction Agreement