Question 1

What's the difference between accord and satisfaction and a settlement?

Accepted Answer

They're close cousins. A settlement is a broader term for resolving any dispute. Accord and satisfaction is a specific legal mechanism where you replace one obligation with a new one and then perform it. Most settlements involve accord and satisfaction, but the terms aren't identical in a legal sense.

Question 2

Does accord and satisfaction have to be in writing?

Accepted Answer

It depends on the jurisdiction and the amount involved. For debts over $500, most states require written proof under the UCC (Uniform Commercial Code). Even when it's not legally required, always put it in writing. A simple email confirming the new terms can save you from a 'he said, she said' situation later.

Question 3

Can I still sue after accepting accord and satisfaction?

Accepted Answer

No. Once you accept the new terms and the other party performs, the original claim is extinguished. That's the whole point — it's a final resolution. If you cash a check marked 'payment in full' for a disputed amount, you may have accepted accord and satisfaction even without a formal agreement.

Question 4

What happens if the other party doesn't follow through on the accord?

Accepted Answer

If they don't perform the satisfaction (the new agreed-upon obligation), the original obligation is typically revived. You can then pursue either the original claim or the new accord — depending on your jurisdiction. The failed accord doesn't wipe out your original rights.

Question 5

Is accord and satisfaction legally enforceable?

Accepted Answer

Yes, as long as three things exist: a genuine dispute about the original obligation, a clear agreement on new terms, and actual performance of those new terms. If any of these elements is missing — especially if there's no real dispute — courts may not recognize it.

Question 6

What if I cash a 'paid in full' check I didn't agree to?

Accepted Answer

This is a classic accord and satisfaction trap. In many states, cashing a check marked 'payment in full' for a disputed debt counts as accepting the accord. Some states (like California under Civil Code §1526) let you cross out 'payment in full' and cash the check without accepting the accord, but don't count on this — it varies by jurisdiction.

Accord and Satisfaction

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