Accord and Satisfaction

Accord and Satisfaction – this is a term, used in Contracts & Obligations Law, where *one party, having complied with its obligation under a contract, accepts some kind of valuable compensation from the opposite party (usually money and of a lesser value) in view of fulfilling the contract and holding the other party to their present obligations. This terminates the agreement (without a breach of contract). I.e. the accord is the agreement by which the obligation is discharged. The satisfaction is the consideration which makes the agreement working and useful.

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