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 New Mexico Agreement for Accord and Satisfaction of an Undisputed Hospital Claim is a legal document that aims to resolve a hospital claim that is undisputed between the hospital and the party responsible for payment. It is a binding agreement that outlines the terms and conditions under which the claim will be settled. The agreement typically consists of several important components. Firstly, it identifies the parties involved in the agreement, including the hospital and the party responsible for payment, which could be an individual, an insurance company, or a government agency. It also includes their contact information for easy communication. The agreement sets forth the specific details of the hospital claim, including the patient's name, medical record number, and the dates of service. This information ensures that there is no confusion regarding the claim being settled. Key terms and conditions related to the amount to be paid are included in the agreement. It outlines the total amount of the claim, including any interest, fees, or additional charges that may have accrued. It also specifies the agreed-upon payment terms, whether it is a lump sum or installment payments, and the due date for each payment. The agreement may also state the consequence of late or missed payments. In certain situations, there might be different types of New Mexico Agreement for Accord and Satisfaction of an Undisputed Hospital Claims: 1. Individual Agreement: This type of agreement is typically used when an individual is responsible for payment. It outlines the terms and conditions specific to the individual's situation. 2. Insurance Agreement: When an insurance company is responsible for payment, a different type of agreement may be used. This agreement will typically include additional clauses related to the insurance company's responsibilities, coordination of benefits, and submission of necessary documentation. 3. Government Agreement: When a government agency, such as Medicaid or Medicare, is responsible for payment, a specialized agreement may be required. This agreement will typically include specific provisions related to compliance with government regulations and reimbursement processes. Overall, the New Mexico Agreement for Accord and Satisfaction of an Undisputed Hospital Claim is a crucial document that ensures both the hospital and the responsible party come to a satisfactory resolution regarding the claim. It provides clear terms and conditions for the settlement, enables effective communication, and helps avoid any potential disputes or misunderstandings.
