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Accord And Satisfaction

Accord and satisfaction is a legal way to settle a debt or dispute by agreeing to accept something different—often less money—than what was originally owed, and then actually carrying out that agreement.

What it actually is

It arises when one party offers a new payment or performance to settle an existing claim, and the other party accepts it with the understanding that it fully discharges the original obligation. This typically appears in contract disputes or debt collection cases, where the parties have a disagreement about what is owed or whether a partial payment ends the matter.

Why it matters in your case

If you successfully prove accord and satisfaction, the court will dismiss the claim because the debt or dispute is legally settled. It matters because it can bar the other side from suing you for the original amount, even if you paid less than what they demanded.

The common misunderstanding

Many people think that simply writing 'paid in full' on a check automatically creates accord and satisfaction, but the other party must actually agree to accept it as full payment—mere words on a check are not enough unless both sides understand and intend the exchange to settle the whole debt.

Get the actual rule

Definitions are orientation; rules are authority

This page explains the concept. When it matters to your case, read the rule that governs it in your court — we hold Texas, federal and Washington court rules word for word, and every state's official resources are on the state pages. If someone cites a case at you, check that it exists first.

Related

Terms that travel with this one

General explanation, not legal advice, and not specific to any state — procedures and deadlines vary by jurisdiction and court. If you can get a lawyer or free legal aid, do: every real option.