contract law · defense

Elements of Accord And Satisfaction

Quick Answer

What are the elements of Accord And Satisfaction?

Accord and satisfaction involves an agreement (accord) between parties to accept a different performance than originally agreed upon. The satisfaction follows when one party executes the agreed performance, thus discharging the original obligation.

Required Elements

1. Existence of a Disputed Claim

There must be a genuine dispute over the duty owed under the original contract.

What to prove: It must be shown that the parties were in disagreement regarding the terms of performance or the amount owed.

2. Agreement to New Terms (Accord)

Both parties must mutually agree to new considerations that substitute the original terms.

What to prove: It must be demonstrated that an agreement was reached whereby one party offers a different performance and the other party accepts it.

3. Performance of the New Terms (Satisfaction)

The party offering the new performance must fulfill their obligations under the new agreement.

What to prove: It must be shown that the party has completed the terms of the accord, thus satisfying the contract.

Burden of Proof

The party asserting the accord and satisfaction bears the burden, and the standard is typically a preponderance of the evidence.

Available Defenses
  • Mutual Mistake
  • Lack of Consideration
  • Incapacity of a Party
Common Fact Patterns
  • A contractor and homeowner disagree on the cost of renovation work; the homeowner offers to pay a lesser amount, and the contractor accepts.
  • A debtor disputes the amount owed to a creditor; the debtor proposes to pay a fraction as full payment, and the creditor agrees.
Exam Tip

Focus on the elements and applicability of accord and satisfaction when presented with hypothetical disputes over contract terms. Be prepared to analyze whether the elements are satisfied in a case scenario.

Key Cases
  • Lantani v. Bagnasco
  • Stewart v. Dicus
  • McCormick v. Hargis

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