Accord And Satisfaction Legal Meaning and Definition

Here is a simplified definition of the legal term Accord And Satisfaction.

Accord and Satisfaction (noun)

An Accord and Satisfaction is a legal concept in contract law where both parties agree to settle a dispute by modifying the terms of their agreement and fulfilling these new terms. An 'accord' is the new agreement, while the 'satisfaction' is the act of fulfilling it. This often happens when a debtor (person owing money) and a payee (person to whom money is owed) come to a new agreement about a debt and the debtor fulfills this new agreement. In a broader context, it could also refer to an agreement reached between an injuring party and an injured party to resolve a conflict or dispute.