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What Is Accord and Satisfaction?

Accord and Satisfaction is referred to as a legal contract which specializes on the settlement of debt and claim or it could also be referred to as a sudden release of debt obligation. Accord is the process of undergoing a contract that would stop the obligation while satisfaction could be considered as the consideration given to both parties involved in the transaction. This agreement is the most commonly used process of settling claims and debts. Just like any other agreement, this doesn’t still guarantee success and still has consequences that go with it. This is why it is very important to understand every detail of the procedure to ensure its validity.

One purpose of accord and satisfaction is its capability to form new contract which eliminates the previous contract. When for instance that the creditor is asking for the list and record of the remainder of the debt, the debtor could just state that accord and satisfaction was already attained and therefore the court would just ignore the case. This goes to show how important is the role of accord and satisfaction to unsettled debts which could lessen the debt that a person is obliged to pay. Also, accord and satisfaction could as well be used in circumstances that people don’t know how legal agreement goes and how it is planned and negotiated because they are given enough guidance to decide for the best interests of the people involved and it is still possible to reach Accord and Satisfaction on behalf of someone else.

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