Accord and satisfaction is a method of discharging a claim whereby the parties agree to give and accept something in settlement of the claim and perform the agreement. Accord is the agreement and satisfaction is its execution or performance.
A contract is usually discharged by performance of the terms of the agreement. However, the parties may agree to a different performance. This is called an accord. When the accord is performed, this is called an accord and satisfaction. The original obligation is discharged.
In order for there to be an accord and satisfaction, there must be
(1) a bona fide dispute;
(2) an agreement to settle the dispute; and
(3) the performance of the agreement.
A settlement in which one party promises to forego an undisputed, liquidated claim in exchange for a promise to perform, or the performance of, a pre-existing duty will not be held to be enforceable by many courts, because of the absence of consideration. However, the promise to perform, or the performance of, anything slightly different from the pre-existing duty is sufficient consideration to support a promise to forego the claim. When a claim is disputed in good faith, or when an undisputed claim is unliquidated (the amount owed has not been determined), a settlement of such a claim is clearly enforceable.
The Guam Agreement for Accord and Satisfaction of an Undisputed Hospital Claim is a legal document that outlines the terms and conditions for resolving an undisputed hospital claim in Guam. It is designed to facilitate an agreement between the hospital (claimant) and the party responsible for the payment (debtor). This agreement seeks to establish an accord and satisfaction, meaning that the parties involved agree on a specific resolution and consider the claim fully settled. By entering into this agreement, the hospital agrees to release the debtor from any further liability in relation to the claim, and the debtor agrees to make payment as outlined in the agreement. The agreement typically begins with general information, such as the names and addresses of the hospital and the debtor involved in the claim. It may also include the date when the agreement is being executed. Next, the agreement usually describes the claim in detail, highlighting the services provided by the hospital and the corresponding charges. It may also reference any supporting documents, such as invoices or medical records, to provide further evidence of the claim's validity. The key terms and conditions of the agreement are then set forth. These terms include the amount owed by the debtor, the payment schedule, and any discounts or adjustments agreed upon. The agreement may also specify the method of payment, such as wire transfer or check, as well as any applicable interest or penalties for late payments. Furthermore, the Guam Agreement for Accord and Satisfaction of an Undisputed Hospital Claim typically includes provisions to protect the interests of both parties. For instance, it may include a clause stating that the hospital retains the right to pursue legal action if the debtor fails to fulfill the payment obligations outlined in the agreement. On the other hand, the agreement might also include a provision stating that the debtor cannot dispute the claim or seek reimbursement for previously made payments. While variations of this agreement may exist, typically tailored to specific circumstances or parties involved, a standard form of the Guam Agreement can be used as a template for resolving undisputed hospital claims in Guam.
