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 Hawaii Agreement for Accord and Satisfaction of an Undisputed Hospital Claim refers to a legal document in the context of medical billing and insurance processes. It is specifically designed for resolving hospital claims that are undisputed, meaning there is no disagreement or dispute regarding the services provided, the charges, or the insurance coverage, among the involved parties. This agreement serves as a means to settle the outstanding hospital claim through an accord and satisfaction arrangement. Accord refers to the parties' agreement to compromise or settle the claim, while satisfaction refers to the fulfillment of the agreement's terms. The Hawaii Agreement for Accord and Satisfaction of an Undisputed Hospital Claim typically outlines the terms and conditions that both the hospital and the insurance provider agree upon. It may contain clauses such as: 1. Identification of the parties involved: The agreement specifies the hospital's name and address, as well as the insurance provider's details. 2. Description of the claim: This section provides a detailed description of the specific hospital services rendered and the charges associated with them. It highlights that all parties agree and acknowledge the undisputed nature of these claims. 3. Payment details: The agreement outlines the terms of payment, including the amount agreed upon, the method of payment, and the payment deadline. 4. Release of further liability: This clause typically states that upon the execution of the agreement and payment, the insurance provider releases the hospital from any further liability or claims related to the specific undisputed claim. 5. Legal consequences of non-payment: The agreement may stipulate the legal consequences in case of non-payment or non-compliance by either party. Different types of Hawaii Agreements for Accord and Satisfaction of an Undisputed Hospital Claim may exist based on the specific hospital and insurance provider involved. However, the core purpose of these agreements remains the same, which is to establish a legally binding agreement that resolves the undisputed hospital claim. It is important to note that the aforementioned details are a general outline and the actual content of the agreement may vary depending on the specific circumstances and requirements of the parties involved. Legal professionals or healthcare consultants should be consulted to ensure that the agreement complies with applicable laws and regulations and meets the specific needs of the hospital and the insurance provider.
