What is an Accord and Satisfaction?
The term Accord denotes or depicts an agreement under which a person accepts an amount of or some treasured or valuable consideration, whereas the term Satisfaction denotes or depicts the payment of the considered amount which is agreed in the agreement or contract to be paid or made. And the whole accord and satisfaction agreement formed is termed as accord and satisfaction, and when this agreement is discharged it is referred to as a tort.
click here – What to Consider When Choosing an Auto Insurance Company
So, accord and satisfaction in tort is used when the agreement is settled up or discharged off.
Therefore, Accord and Satisfaction is normally a legal term that signifies taking up reimbursement in exchange of some prescribed or predetermined compulsion from another party.
Points to be noted :
- While taking up the new agreement of Accord and Satisfaction, the existing agreement is adjourned.
- The earlier agreement remains adjourned until the new laws or terms of the
Accord and Satisfaction agreement is followed up.
Accord and Satisfaction definition is an agreement between the two constricting parties who take up an alternative act to do a pre-existing duty that exists between the parties and the agreement’s subsequent performance.
Here, the agreement or contract is termed as the accord and the compensation received from the contract or to be received is termed as satisfaction.
Some of the elements for an accord and satisfaction meaning is summed up as follows:
- The transaction creditor understanding as well as the acceptance of the payment.
- The discharged claim.
- The claimant’s good faith in the dispute.
- The person behind the claim or the dispute.
Read here:- What is Hazard Insurance, How it is Different than Homeowners Insurance?
An accord depicts agreement existing with some conditions and the Satisfaction depicts the parties to the agreement who in term fulfill the obligations. So, the Accord and Satisfaction exists where the parties have fulfilled their promise or obligations and when the contract has fulfilled its objective or purpose. So, the existence of both things takes us to the existence of the Accord and Satisfaction.
click here – Temperature Monitoring Market Will Reach Record Growth
After following the accord and satisfaction agreement by the two parties, they can still sue or take up some lawful or legal actions against the other party. So, here ascends the need of the defence of accord and satisfaction which makes sure that the contract of an accord and satisfaction is actually made leading to defending the contract of accord and satisfaction.
Why the Accord and Satisfaction is important?
It is important in settling down the disputes arising in a particular contract.
- The National Insurance Company Limited v. Boghara Polyfab Private Limited
- The Union of India v. M/s Ajit Mehta and the Associates, Pune, and Others, AIR 1990 bom 45
- S.C. Konda Reddy v. Union of India and Anr, AIR 1982 Kant 50
- Payana Reena Saminathan v. Pana Lana Palaniappa (restated in Union of India v Kishori lal Gupta and Bros, AIR 1959 SC 1362)
- The P.K. Ramaiah and Company v. Chairman & Managing Director, National Thermal Power Corporation, 1994(1) SCALE 1
Also Read:- Top 10 Best Life Insurance for Seniors
The Accord and Satisfaction help in settling down the disputes between or arising between the two parties, and acting as an operative tool in resolving the conflicts. But, the scope is quite wide to understand and follow.