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.
A South Dakota Agreement for Accord and Satisfaction of an Undisputed Hospital Claim is a legal document that serves as a resolution method for hospital claims that are not in dispute. This agreement is used when both parties involved in the claim, namely the hospital and the claimant, come to a mutual understanding and agree to settle the claim through an accord and satisfaction. The South Dakota Agreement for Accord and Satisfaction of an Undisputed Hospital Claim includes relevant keywords such as: 1. Undisputed: This term refers to a hospital claim that is not contested or challenged by either party. It means that both the hospital and the claimant agree on the validity and amount of the claim. 2. Hospital Claim: This phrase signifies a request made by a hospital for reimbursement of medical services provided to a patient. It includes charges for treatments, procedures, medicines, room and board, and other related expenses. 3. Accord and Satisfaction: Accord refers to an agreement between the parties involved, while satisfaction refers to the fulfillment of the agreed-upon terms. In this context, it means that both the hospital and the claimant reach an agreement on resolving the claim, and the claimant agrees to provide payment or other consideration as satisfaction. 4. Resolution: This term emphasizes the purpose of the agreement as a method to resolve the hospital claim. It signifies that both parties are seeking a formal solution to avoid disputes, legal proceedings, or prolonged negotiations. While there may not be different types of South Dakota Agreement for Accord and Satisfaction of an Undisputed Hospital Claim, the specific terms and conditions included in the agreement may vary depending on the circumstances. The agreement typically includes details such as the claimant's name, hospital name, date of service, and a breakdown of the charges. It also outlines the agreed-upon settlement amount, payment terms and methods, confidentiality provisions, and a release of liability for both parties. It is crucial for both parties involved to thoroughly review and understand the terms of the agreement before signing. The agreement serves as a legally binding contract, settling the disputed hospital claim and ensuring future peace and satisfaction between the parties.
