Accord and Satisfaction

Account Stated

An agreement to accept less than is legally due in order to wrap up the matter. Once the accord and satisfaction are made and the amount paid (even though it is less than owed) the debt is wiped out since the new agreement (accord) and payment (the satisfaction) replaces the original obligation. It is often used by creditors as “a bird in the hand is worth two in the bush” practicality.

Was This Term Helpful?

0 out of 0 found this helpful

Still got a question or concern?

Click here to contact us or go back to the main Glossary page.