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 Virginia Agreement for Accord and Satisfaction of an Undisputed Hospital Claim is a legal document that outlines the terms and conditions for settling and resolving an undisputed hospital claim in the state of Virginia. This agreement serves as a means of coming to a mutually acceptable resolution between the hospital and the party responsible for the claim, without the need for litigation or further legal action. Keywords: 1. Virginia: This indicates that the agreement is specific to the state of Virginia and follows the laws and regulations governing hospital claims within the state. 2. Agreement: Refers to a legally binding contract between the hospital and the responsible party. 3. Accord: Implies an agreement or compromise between the parties involved. 4. Satisfaction: Indicates the resolution and settlement of the claim to the satisfaction of both parties. 5. Undisputed: Specifies that the claim is not in dispute or disagreement and is acknowledged by both parties involved. 6. Hospital Claim: Refers to the amount of money owed to the hospital for services provided, such as medical treatments, surgeries, or accommodations. Different types of Virginia Agreement for Accord and Satisfaction of an Undisputed Hospital Claim may include: 1. Individual or Patient Agreement: This type of agreement is entered into by an individual patient and the hospital, where the patient takes responsibility for the payment of their medical bills. 2. Insurance Agreement: This type of agreement is made between the hospital and an insurance company that is responsible for paying the hospital's claims on behalf of the insured individual. 3. Employer Agreement: This type of agreement is entered into between the hospital and an employer who is responsible for paying the hospital bills as part of an employee's benefits package. These different categories of agreements may have some variations in terms and conditions depending on the specific circumstances, but they all aim to resolve an undisputed hospital claim in Virginia.
