What does accord and satisfaction mean?

accord and satisfaction meaning in Legal Dictionary

n. an agreement to just accept significantly less than is lawfully because of being wrap-up the problem. After the accord and satisfaction is made plus the quantity compensated (even though it is not as much as owed) the debt is eliminated since the brand-new contract (accord) and payment (the satisfaction) replaces the initial responsibility. It is utilized by creditors as "a bird in hand may be worth two when you look at the bush" practicality.

accord and satisfaction meaning in Law Dictionary

When two parties sign a contract that releases the other in substitution for some payment.

accord and satisfaction meaning in Business Dictionary

Agreement between two parties to a contract, for which one-party (that has a legal claim contrary to the various other) releases another party from its responsibilities in substitution for some kind of payment. The contract could be the 'accord,' and the settlement could be the 'satisfaction.'

accord and satisfaction meaning in General Dictionary

the settlement of a debt by paying significantly less than extent demanded in return for extinguishing your debt