This refers to an arrangement to dismiss a claim in which both parties agree to give and accept a different performance that is usually less than what was originally required or owed. So long as both parties meet their new terms, the previous agreement remains suspended. Should a party fail to fulfill the new agreement’s terms, they may become liable for stricter terms than those in the original contract.
Accord and satisfaction
This refers to an arrangement to dismiss a claim in which both parties agree to give and accept a different performance that is usually less than what was originally required or owed. So long as both parties meet their new terms, the previous agreement remains suspended. Should a party fail to fulfill the new agreement’s terms, they may become liable for stricter terms than those in the original contract.
