Accord and Satisfaction: Discussions in Contracts Podcast
This podcast explains the concept of Accord and Satisfaction, with a focus on when an accord is formed and when performance under the accord results in a satisfaction. This concept differs from modification. With accord and satisfaction, one party has completed performance and the other party’s only obligation is to render its performance -- usually the payment of money. So the party who has performed is in the position of a creditor and the party who has not performed is in the position of a debtor. In that situation, one of the parties – usually the debtor – may offer to settle the debt by paying less than the amount owed. An accord is the agreement to discharge a debt by the payment of less than the full amount. A recurring question involving accords is whether an agreement to accept payment of the lesser agreed amount, followed by payment of that lesser amount, discharges the debt. This podcasts also discuss U.C.C. § 1-308 and Arrol v. Con Edison, 322 N.Y.S.2d 420 (1971).
On completion of the podcast, the student will be able to:
1. Explain when parties have entered into an effective accord.
2. Identify whether there has been an offer, an acceptance, and consideration.
3. Explain what happens when there is an effective accord, and if there is satisfaction when the debtor performs according to the terms of the accord.