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Accord and Satisfaction
This is the name given to legally wrapping
up a dispute in which a creditor accepts less than is owed
to him, usually just to get the matter resolved. It
is a compromise in which the new agreement (accord) and
payment (satisfaction) replace the old agreement or
contract.
Suppose someone owes you money for an item
you sold them. The original price was $500, but the
buyer says he can only pay you $400 and sends you a check
for that amount. In most states, but not all, if you
cash the $400 check, then you are accepting the accord and
cannot try to collect on the remaining $100.
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