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 Maryland Agreement for Accord and Satisfaction of an Undisputed Hospital Claim is a legal document that outlines the terms and conditions for resolving a hospital claim that is undisputed. This agreement is specific to the state of Maryland and is used in situations where there is a clear resolution for the hospital claim that both parties agree upon. Keywords that are relevant to this agreement include Maryland, accord and satisfaction, undisputed, hospital claim, legal document, terms and conditions, resolution, parties, and agreement. There are different types of Maryland Agreement for Accord and Satisfaction of an Undisputed Hospital Claim, which could include agreements for different types of hospital claims, such as medical procedures, treatments, or services provided by the hospital. However, it is important to note that the specific types of agreements can vary depending on the circumstances of the hospital claim and the parties involved.
